BHUBANESWAR: With many states moving the Centre seeking early release of dues towards the GST compensation for August-September period, Odisha government has also expressed concern as it is yet to receive compensation of Rs 1,194 crore for the two months.
The GST compensation Act 2017 entitles the state and union territories (UTs) with assemblies to get compensation if the revenue growth is less than 14% compared to corresponding period of a specific period.
The compensation, which is being paid bi-monthly, is for the loss of revenue to the states and UTs in view of implementation of the goods and services tax (GST), for a transition period of five years from July 1, 2017.
No state in the country has received the GST compensation from the Centre for August-September, a reason that has forced some non-NDA states to go up in arms against the Centre.
For the current financial year, the Centre has agreed to fix the protected revenue from GST for Odisha at Rs 18,661.89 crore. Accordingly, the state should have got GST revenue of Rs 9,330.94 crore by September-end, said a finance department official, requesting anonymity.
Odisha’s actual revenue collection under GST during April-September is estimated at Rs 6,591.62 crore, leading to a shortfall of Rs 2,739.32 crore.
“While we have received Rs 1,545 crore as compensation by July-end against the shortfall, the Centre is yet to release Rs 1,194.32 crore for August-September. Though we have sent several letters to the Centre in this regard, we are yet to get any definite assurances from the Centre as to when the dues will be cleared,” the official said.
The compensation amount is likely to be doubled, if dues of October-November will be added though it has not been estimated yet.
Odisha government will raise the issue in the GST Council meeting likely to be held later this month, said an official source.
The state government apprehends that non-release of GST compensation dues by the Centre may affect implementation of social welfare schemes and development projects.
Since implementation of GST (July 1, 2017), Odisha has received compensation of Rs 2,348 crore for 2017-18 and Rs 3,785 crore for 2018-19 financial year.
Fall of revenue under the GST is believed to be the reason for which the Centre is yet to release the compensation amount for the August-September period. To shore up the revenue base, the Centre is likely to review rates of various goods and services in the GST Council meeting, an official said. The Centre has also asked the states to examine cess and exemptions of various goods and services.
On Wednesday, finance ministers and representatives of eight states — Punjab, Madhya Pradesh, Delhi, West Bengal, Kerala, Chhattisgarh and Puducherry — met Union finance minister Nirmala Sitharaman to press for their demand for early release of dues.
Source- Times of India.