Telangana Government to take up GST fight along with like-minded States

Hyderabad: The Government of Telangana appears to be in a mood to go in for a joint fight against the Centre demanding reimbursement of GST. It participated in the video conference held by non-BJP state governments and said that the Centre's proposals were not acceptable to them and instead the Centre should borrow money and pay the dues to the States.

Finance Minister T Harish Rao said it is like someone saying since I am affected by Covid-19, I cannot pay Income Tax as they do not have money due to 'Act of God'? Will the Centre agree to it ?.

He took strong objection to the decision of the Centre reducing the payment of GST dues to the States to Rs 1.30 lakh crore from Rs 3 lakh crore on the pretext of Corona pandemic. The Centre has the option to avail the borrowings at the lowest interest rates whereas the States does not have such an option, he explained.

Harish Rao said that the TRS along with non-BJP states would stall Parliament proceedings in the ensuing session if the Centre failed to pay the GST compensation and dues. The Finance Ministers from Punjab, Chhattisgarh, Kerala, Delhi, Rajasthan, West Bengal and Odisha participated in the conference.

Addressing media after the meeting, Harish said that the Telangana government is mulling to knock on the doors of courts if the Centre did not mend their ways.

Chief Minister K Chandrasekhar Rao also shot off a missive to the Union government against the indifference shown towards the States in the release of GST dues recently.

Harish said as per GST Act, the Centre has to pay all tax dues owed to the states. The Union government has made the promise of GST compensation payments and dues at the time of enactment of the GST bill in Parliament. Now, the Centre took an U-turn and putting all burden on the States in the crisis time.

Harish Rao said that Telangana has suffered a loss of Rs 8,000 crore revenues in the last four months in the crisis period. The Centre disbursed only Rs 3,200 crore out of Rs 18,032 cess collected by the State. The Centre has promised the payment of cess even if the collections go down at the 7th and 8th GST Council meeting.

Harish Rao said the Telangana would have got Rs 20,000 crore additional revenues if the GST was not there. Harish alleged the Congress-led UPA and BJP-led NDA conspired to weaken the federal system by taking away the State powers.