Telangana CM Ok Chandrashekhar Rao seeks PM’s intervention on GST dues

Naveen S Garewal
Tribune News Service

Hyderabad, September 1 

Telangana Chief Minister Ok Chandrashekhar Rao (KCR) has shot off a letter to Prime Minister Narendra Modi objecting to the Centre’s choices to scale back GST compensation and dues pending to the states.

Seeking the prime minister’s intervention, KCR requested him to step in for strengthening cooperative federalism on this disaster scenario and be certain that the nation doesn’t solely overcome the present monetary disaster but in addition, emerge as a robust nation. 

The chief minister wrote the letter within the wake of a discount in GST compensation payable to states from about Rs three lakh crore to Rs 1.65 lakh crore. He had already shot a missive to Union Finance Minister Nirmala Sitharaman expressing the state’s opposition to the Centre’s transfer. 

The chief minister has identified that the states have been on the forefront of combating the COVID-19 pandemic and reviving the state economies, and thus, in want of extra assets than the Centre.

The letter which is with The Tribune reads “Telangana state suffered a revenue loss of 83 per cent in April this year whereas COVID-19 pandemic related expenditure increased”.

He additional wrote, “The Centre has violated the provisions of GST Compensation Act by parking the surpluses of the Compensation Fund in its Consolidated Fund instead of parking them in the non-lapsable Compensation Fund in the Public Account”. 

Further, the chief minister strongly opposed the Centre’s suggestion to the states to go for borrowings to satisfy the monetary necessities.

He requested Prime Minister Modi to reverse the Centre’s determination and as a substitute, the Centre can borrow all the shortfall quantity based mostly on the power of the receipts into the cess quantity.

He felt that all the debt servicing – each principal and curiosity may be paid from the cess collected for such an prolonged interval past 2022 which may be determined by the GST Council. 


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