GST revenues not enough for States’ compensation: Centre

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Letter to States flags falling collections

The Centre has written to all the States voicing concern that due to the lower Goods and Services Tax (GST) collections, the compensation cess might not be enough to pay for losses arising out of the tax system.

The communication comes at a time when several States, including Rajasthan, Kerala, Delhi, Punjab and West Bengal, have publicly urged the Centre to transfer pending compensation payments as they have not received the dues for several months.

The government of Punjab has even said it may take the matter to the Supreme Court if the Centre does not release the dues.

The issue will be discussed in detail at the next GST Council meeting, scheduled for the second fortnight of December.

“Among other issues, the GST revenue position shall be discussed in detail at this meeting,” the Centre’s letter to the States, reviewed by headlines kerala, said.

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