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States want urgent GST Council meet for addressing ₹40,000 cr due

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Amit Mitra, Bengal Finance Minister has claimed for the GST compensation and the argument over GST compensation continued between the Centre and the State governments. Amit Mitra points out that the dues owed to the States and three Union Territories with Legislative Assemblies total about ₹40,000 crore.

The GST Act provides that States and UTs with Assemblies are guaranteed compensation if the GST revenue growth is less than 14 per cent. The amount is paid bi-monthly. This year, States and three UTs were paid ₹28,000 crore for the June-July period. They are yet to be paid for August-September, which was due in October.

The Centre has assured the States/UTs that the dues will be paid soon. If the compensation amount of ₹28,000 crore is taken as the base, then the total amount required for the remaining period would be ₹84,000 crore. The cess amount expected to be collected in the remaining period based on the mop-up in April-required to be released.

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