Telangana CM urges Nirmala Sitharaman to release Rs 4,531 crore in GST dues
Chief Minister K. Chandrashekar Rao outlined that the state received compensation only for the first four months in the current financial year and the balance amount is due.
Hyderabad: Telangana Chief Minister K Chandrashekar Rao on Saturday wrote to Finance Minister Nirmala Sitharaman, urging her to release Rs 4,531 crore in GST dues pending from the central government. In the letter, Rao explained the state`s financial position and the tax devolution received by the state so far.
"Tax devolution in Telangana is Rs 19,719 crore, 6.2 per cent more than last year. But this state has received only Rs 10,304 crore till November, which is less by Rs 224 crore compared to last year. So, instead of receiving an enhanced amount, the state has received less," the Chief Minister said.
"With the further slowdown of the economy during the second quarter, it is likely that there will be a further reduction in tax devolution. Further, because of the slowdown in the economy, there is a shortfall in GST collections compared to the benchmark growth of 14 per cent, and an amount of Rs 1,719 crore is due as compensation as mandated under the GST Act," Rao added.
The Chief Minister outlined that the state received compensation only for the first four months in the current financial year and the balance amount is due.
"The IGST settlement was done during 2017-18 based on the tax devolution formula of Finance Commission, instead of the formula adopted for IGST settlement. This has resulted in a shortfall of Rs 2,812 crore. Due to the above reasons, the state is waiting for its legitimate dues of Rs 4,531 crore of GST, while at the same time it is also suffering due to a shortfall in tax devolution," Rao said.
"I request you to kindly look into the matter and release the pending dues expeditiously so that the developmental programmes of Telangana do not suffer for lack of resources," he further said.