New Delhi, Nov 20 (SocialNews.XYZ) Some of the opposition-led state governments have claimed that the Centre has not cleared the GST compensation dues for the months of August and September forcing them to resort to even overdraft.
In a joint statement, the state finance ministers of West Bengal, Delhi, Kerala, Rajasthan and Punjab said that the delay has shaken their confidence.
They said despite many challenges from time to time, states have extended their support to all major decisions of the GST Council.
"State FMs appealed to the Union Finance Minister to look into the matter personally and release the compensation without any delay," the statement said.
The state finance ministers also suggested that the matter should be placed on the agenda of the next meeting of the GST Council and a healthy mechanism be evolved to provide compensation in future with due urgency and judiciousness.
As per the states, GST comprises nearly 60 per cent of their tax revenues.
The joint statement said that many states are already facing deficits of up to 50 per cent of the total GST.
"Such huge deficits have the potential to disrupt the budget and planning processes in a host of areas, literally bringing activities of the states to a grinding halt," it said.
Source: IANS
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