Thursday, Apr 25, 2024 | Last Update : 06:36 PM IST
Maharashtra government seeks Rs 15,000 crore GST compensation
Along with Maharashtra, Tamil Nadu, Gujarat and Karnataka will also get some compensation from the Centre for delay in GST.
Mumbai: After delay in implementing the Goods and Services Tax (GST), the Maharashtra government, fearing revenue loss, has demanded Rs 15,000 crore from the Centre. The amount is almost 25 per cent of the total budget of the state.
The state government wrote to the Centre after it was announced that the GST would be implemented from July and not April. The Centre has not promised about the exact funds it will give to Maharashtra yet. The Union budget, to be presented on February 1, will have the provision.
Recently, a committee, consisting of the state and the Centre officials from the finance departments, viewed the situation in the state about GST. The similar committees went to other states too where the GST will have impact on the revenue. The committee for Maharashtra has also recommended the similar amount for the state as compensation in absence of GST.
“The committee of expert finance officials have recommended that Maharashtra should get Rs 15,000 crore as a compensation. We have also written to the Centre in this regard. The Centre has assured us to provide sufficient compensation but not committed the exact amount. We are confident that the Centre will release funds,” a senior official from the finance department said.
When asked about the formula for the compensation, the official said that the Centre would work it out. “We have suggested a few things to the Centre. But the Centre is working on the formula and will soon send it to us. It is in the final stage. The Centre will see to it that the state will not have to bear losses,” the official added.
Along with Maharashtra, Tamil Nadu, Gujarat and Karnataka will also get some compensation from the Centre for delay in GST. The state government was keen on implementing the GST from April 1. However, the Union Finance minister Arun Jaitley declared that GST would be implemented from July. Now the state will have to calculate the tax based on the old system from April and according to the GST from July onwards.
