"Deputy CM Ajit Pawar asks Union FM Sitharaman to immediately pay the state its pending GST share of Rs 22,534 crore "
Ajit Pawar wants the five-year period of GST compensation cess raised by another five years from 2022. File pic
SPEAKING at the Goods Service Tax (GST) council meeting on Thursday, Maharashtra Finance Minister Ajit Pawar urged the Centre to act like a big brother and save the state's economy by paying the state government its GST compensation share of Rs 22,534 crore. He also said the Centre should seek loans for distribution among the COVID-19 affected states.
Pawar said at the meeting chaired by Union Finance Minister Nirmala Sitharaman that the state's GST dues till July this year would increase to Rs 1 lakh crore in two years if not paid by the Centre immediately. "The Centre has accepted the responsibility of saving the states, so it must fulfill the duty of a big brother. We have not been getting our share in time," Pawar told Sitharaman in presence of his finance department colleagues from various other states.
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He said the delayed GST payment has affected the development work even as the states are expected to get additional funds to fight the COVID-19 pandemic. He suggested that the Centre take a loan from the market because it would be cheaper than the debt availed by the state government. "Distribute that money to all of us. The states can't afford expensive debt," he said.
He wanted the five-year period of GST compensation cess raised by another five years from 2022. "You may recover the money given to the states in the extended period," he said.
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