Kerala Finance Minister K N Balagopal on Tuesday, October 5 said that the Union government needs to pay GST (Goods & Services Tax) pay of Rs 4,466 crore to the state since the 2017-2018 fiscal year. He was replying in the Assembly to an inquiry on GST pay got from the Union government.
While in 2017-2018, the balance compensation to be gotten by the state was Rs 57.32 crore, it was Rs 25.79 crore in 2018-2019. Nonetheless, in 2019-2020, the state got an excess of Rs 11.40 crore. Again in 2020-21 and 2021-22, the balance due was Rs 1,473.40 crore and Rs 2,921.84 crore, respectively. Adding these sums, the total due to the state is Rs 4,466 crore.
“According to the Goods & Services Tax Dept data, in 2017-18, Rs 57.32 crore and in 2018-19, Rs 25.79 crore was pending from the Central government as GST share. In 2019-20, we have received an excess amount of Rs 11.40 crore. But in 2020-21, the received compensation cess is less than the compensation amount. Through compensation cess, we got Rs 4905.51 crore and though special window loan, we received Rs 5,766 crore,” he said.
The minister said that the balance amount of Rs 1473.34 crore for 2020-21 is as yet forthcoming and the state government needs to get it. “We have received the compensation amount regularly in 2017-18 and 2018-19. But in 2019-20, we haven’t received it regularly. The compensation amount for December 2019 to February 2020 was received on 04.06.2020 and the compensation amount for March 2020 was received on 23.07.2020. For 2021, we haven’t received the compensation amount regularly and we have discussed this issue in the GST meeting held on 27.08.2020,” he added.
Balagopal said that following demand from various states including Kerala, the Union government decided to borrow Rs 11,000 crore to give the pay amount to the states, and in 2020-21, Kerala got Rs 5,766 crore as remuneration. He added that in June 2022, the time span to get the remuneration will lapse and before that, the state ought to get the compensation amount.
Last month, the minister had focused on broadening the GST compensation beyond June one year from now since the state is now confronting a huge revenue shortfall. Balagopal had said that the state isn’t getting its due in the wake of devolution suggestions by the 15th Finance Commission.
In July, the minister had met with Union Finance Minister Nirmala Sitharaman and demanded a moratorium on repayment of loans, particularly by small borrowers, in the midst of the financial emergency brought about by the COVID-19 pandemic. He had additionally raised different issues, including immediate payment of GST pay levy. Tending to the media, Balagopal had said that the Union government ought to quickly release the GST compensation dues as the state was confronting an extreme financial emergency.
During his meeting, he likewise set out a suggestion that the GST compensation framework, which is to end in July one year from now, ought to be stretched out for an additional five years. He likewise pitched for expanding the acquiring furthest reaches of the state with no conditions.
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