CM seeks Rs 15,558 crore dues from the Centre

CM seeks Rs 15,558 crore dues from the Centre

Mumbai: Chief Minister Uddhav Thackeray, in a letter to Finance Minister Nirmala Sitharaman, has asked for dues of  Rs 15,558.05 crore comprising Goods and Services Tax (GST) compensation till November 2019 from the Centre. 

Thackeray has sought immediate release of the amount. “The government is waiting for the dues. The State government has not received its share till November due to which developmental works are being affected,” Thackeray said in the letter. He further stated “Per the Union budget 2019-20, tax devolution to Maharashtra was Rs 46,630.66 crore.”

“This is 11.15 per cent more than Rs 41952.65 crore received by the state during 2018-19. But the state has received only Rs 20,254.92 crore till October 2019 which is 25.53 per cent less compared to the budget estimate of 2019-20,” he stated in the letter.
 
“Instead of that, the state received less amount allocated in the Union budget. With the further slowdown of the economy during the second quarter, it’s likely that there will be a further reduction in tax devolution,” the letter said. 

The GST settlement was done during 2017-2018 based on tax devolution formula of the finance commission, instead of the formula adopted for GST settlement. As per the CAG report, it is noticed that settlement for many transactions is not happening. This is partly responsible for the accumulation of huge unsettled balance under GST, which resulted in a shortfall of GST settlement dues in the state. 

Thackeray explained in the letter. 

“The state is waiting for its legitimate dues of Rs 15,558.05 crore from the Centre. It is also suffering due to the shortfall in tax devolution. Timely release of GST compensation and tax devolution amount will help the state to manage finances efficiently,” the letter stated. 

“The pending dues include Rs 6,946.29 core of tax devolution and Rs 8,611.76 crore towards GST compensation,” it stated.

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