Live
- Ashutosh Gowariker to lead International Jury at IFFI 2024
- The global challenges of greener aviation
- Shreyas Media secures exclusive advertising rights for ‘MahaKumbh Mela 2025’
- Experience the journey of art
- Seven iconic ghats undergo makeover for Mahakumbh
- Smog engulfs capital with ‘severe’ air quality
- Slur against HDK wrong, Zameer will be corrected: K’taka Cong
- Himalayan Echoes Literature Festival returns to Nainital with a focus on art, environment, and culture
- Taking Off: Solo travelling as a minor
- MVA will win over 160 seats, form govt in Maha: Shivakumar
Clear 5,420 crore GST dues first, says Harish Rao
Clear 5,420 crore GST dues first, says Harish Rao
The Government of Telangana State has strongly opposed the proposal made by Union Finance Minister Nirmala Sitharaman that the States should borrow to make up for the shortfall in the tax revenues that have been compounded by the Covid-19 crisis which according to her was an ‘Act of God’.
Hyderabad: The Government of Telangana State has strongly opposed the proposal made by Union Finance Minister Nirmala Sitharaman that the States should borrow to make up for the shortfall in the tax revenues that have been compounded by the Covid-19 crisis which according to her was an 'Act of God'.
Participating in the 41st GST council meeting, which was held through video-conference with finance ministers of all the States, Nirmala Sitharaman stated that the corona pandemic had hit the Goods and Services Tax (GST) collection where the shortfall is Rs 2.35 lakh crore. The two options before states are: Option 1 -- A special window can be provided to the States, in consultation with the Reserve Bank of India, at a reasonable interest rate for borrowing of Rs 97,000 crore.
The amount can be repaid after five years (of GST implementation) ending 2022 from cess collection. Option 2 -- Borrow the entire Rs 2.35 lakh crore shortfall under the special window.
Reacting to the proposal, Telangana State Finance Minisiter T Harish Rao said the Telangana Government was opposed to the proposal. It would submit its objections in writing within a week to the council. Harish instead batted for early clearance of the GST dues to the tune of Rs 5,420 crore as GST compensation and another Rs 2,700 crore IGST amount which was also pending for long. He urged the Union Government to finalise the modalities for the release of IGST at the earliest. Telangana, he said, was one among five States which was collecting the highest GST but getting lesser compensation.
He pointed out that Telangana had received only Rs 3,223 crore as GST cess and demanded the Union minister to clear the pending cess amount. The 15th Finance Commission recommendations to reduce devolution also meted out injustice to the States, he added.
