Many states have demanded that the GST compensation cess regime be prolonged for another 5 years and the share of the Union authorities within the centrally-sponsored schemes be raised because the COVID-19 pandemic has impacted their revenues.
The GST compensation to states for income shortfall ensuing from subsuming of native taxes akin to VAT within the uniform nationwide tax Goods and Services Tax (GST) will finish in June subsequent 12 months.
There has been a loss of income to the states because of the GST tax system, the Centre has not made preparations to compensate the loss of income of about Rs 5,000 crore to the state within the coming 12 months, so the GST compensation grant must be continued for the following 5 years after June 2022, Chhattisgarh Chief Minister Bhupesh Baghel mentioned.
“Many states have requested for this. We have additionally requested to increase GST compensation. If it’s not prolonged, the funds of many states will probably be in a nasty form,” Delhi Deputy Chief Minister Manish Sisodia mentioned after pre-Budget session of finance ministers of states with Union Finance Minister Nirmala Sitharaman right here.
Pointing out that Chhattisgarh has obtained much less share of central taxes by Rs 13,089 crore within the Union Budget of the final three years, Baghel demanded the share of central taxes must be given to the state utterly within the coming 12 months.
He additionally demanded that Rs 4,140 crore deposited with the Centre on the price of Rs 294 per tonne on coal mining from coal block corporations must be transferred to Chhattisgarh quickly.
Rajasthan Education Minister Subhash Garg mentioned extension of compensation cess window until 2026-27 is a sound demand of states and the Centre ought to contemplate it.
He additionally demanded discount in import responsibility on gold and silver from 10 per cent to 4 per cent.
“Our most important demand is that the Centre’s share in centrally-sponsored scheme has step by step diminished and states share has elevated. Earlier share can be 90-10 and now it’s 50-50 or 60-40, our request is that it ought to return to 90-10,” Garg mentioned.
Rajasthan additionally requested that each one irrigation and water work initiatives must be introduced beneath the Centre’s ambit and declared central schemes.
West Bengal additionally pitched for extension of GST compensation for another 5 years citing two years of troublesome time on account of COVID-19.
COVID disaster was not anticipated when this was mounted, mentioned West Bengal Urban Development & Municipal Affairs Minister Chandrima Bhattacharya.
She additionally mentioned that states have additionally requested for elevating the Union authorities’s share within the Centre-sponsored schemes.
With concerning to state borrowing, she mentioned that further borrowing window must be with none restriction.
Tamil Nadu Finance Minister P Thiaga Rajan mentioned he has demanded extension of GST compensation cess regime for at the very least two years as a result of of COVID-19.
He additionally made a case for elevating share of Government of India within the centrally-sponsored schemes.
(Only the headline and film of this report might have been reworked by the Business Standard workers; the remaining of the content material is auto-generated from a syndicated feed.)