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Maharashtra CM Uddhav Thackeray demands GST dues from Centre

Earlier, Thackeray had demanded that since Maharashtra contributed nearly half the total tax revenues to the Central exchequer, the Centre should waive (the state’s contribution) for two years, which could help it wipe off all its debts in one shot.

Maharashtra CM Uddhav Thackeray demands GST dues from Centre

In a letter to Finance Minister Nirmala Sitharaman, Thackeray said this includes Goods and Services Tax compensation of Rs 8,611.76 crore and the rest arrears of Integrated Goods & Services Tax. (File Photo: Twitter/@OfficeofUT)

Amid reports of empty state coffers, Maharashtra Chief Minister Uddhav Thackeray has demanded the centre plough back its total outstandings on account of GST-IGST of over Rs 15,500 crore, an official said on Wednesday.

In a letter to Finance Minister Nirmala Sitharaman, Thackeray said this includes Goods and Services Tax compensation of Rs 8,611.76 crore and the rest arrears of Integrated Goods & Services Tax.

This, coupled with the ongoing economic slowdown, has posed serious problems for the state’s finances owing to which its development programmes are suffering, the CM informed Sitharaman.

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The state’s communication to the Centre came barely days after Minister Jayant Patil revealed that the state’s current debt burden comprises Rs.4.71 lakh crore, besides another obligation of Rs 2 lakh crore on various ongoing mega-infrastructure projects such as the Bullet Train.

Earlier, Thackeray had demanded that since Maharashtra contributed nearly half the total tax revenues to the Central exchequer, the Centre should waive (the state’s contribution) for two years, which could help it wipe off all its debts in one shot.

Earlier, on December 4, a delegation of the opposition-ruled seven states comprising of their Finance ministers or representatives met Union Finance Minister Nirmala Sitharaman and told her that it’s embarrassing for them come and ask for money. They apprised her over the delay in release of GST compensation which is creating financial troubles for the states.

The states of Delhi, Punjab, Puducherry Madhya Pradesh and representatives from Kerala, Rajasthan, Chhattisgarh and West Bengal came for the meeting which lasted for half-an -hour.

These states have not received compensation for the month of August and September while the compensation for the month of period October-November will also be due after December 10.

Under the Constitution Amendment Bill, states were guaranteed compensation for 5 years to offset tax revenue shortfall caused due to the losses after the implementation of GST in 2017.

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