While Telangana is one the ten states that clearly raised the red flag over the decisions taken by GST council on the payment of dues and compensation to the states, state Chief Minister KCR on Tuesday shot off a strong letter to the Prime Minister over the same.
Raising concerns over the payment of GST dues to the states, KCR took strong exception to the unilateral decisions taken by GST council in the wake of crisis time. “This is a clear violation of provisions in the GST Compensation Act. We strongly oppose the centre’s decision of parking the surpluses in the compensation fund in its consolidated fund instead of parking them in the non-lapsable compensation fund in the Public Account,” stated the letter.
KCR then condemned the central government’s suggestion made to the states to borrow funds to meet the financial requirements if any. He also specified that Telangana, during the past four months, had lost 35 per cent of income, which is to the tune of Rs 8,000 crore, he pointed out in the letter.
It is to the known knowledge that the BJP-led government reduced the Goods and Services Tax (GST) compensation which is to be paid to States from Rs 3 lakh crore to Rs 1.65 lakh crore.