“I have written a letter to the Chief Ministers of 17 states,” Baghel said.
New Delhi: Chhattisgarh Chief Minister Bhupesh Baghel on Sunday (March 27, 2022) said that he has written a letter to the CMs of 17 states and has urged that a joint request should be made to the Centre to continue the compensation of Goods and Services Tax (GST) for 10 years.
“The Central Government has decided that the compensation of GST given to the states will be stopped after June 2022. This will result in a huge loss of revenue to the producing states. We had requested the Center to continue with the GST compensation or make an alternate arrangement.
“I have written a letter to the Chief Ministers of 17 states requesting that a common request should be made to the Central Government to continue the compensation for ten years,” the Congress leader tweeted.
Meanwhile, the Union Finance Ministry has released Rs 96,576 crore to states and Union Territories (UTs) so far this year to meet the revenue shortfall on account of the implementation of Goods and Services Tax (GST).
The states and UTs have also been provided with an additional Rs 1.59 lakh crore as a back-to-back loan, Union Finance Minister Nirmala Sitharaman informed the Rajya Sabha recently.
According to the minister, Rs 53,661 crore is yet to be released to the states as GST compensation for the current financial year.
As part of the implementation of the new tax regime, the centre has agreed to compensate the states and UTs with Legislative Assembly for any loss in revenue. The GST regime was implemented on July 1 2017. The Centre has agreed to compensate for the revenue shortfall for the first five years of the implementation.
(With agency inputs)
