Kerala, West Bengal and Punjab are vocal about Modi's demand for arrears of GST


BanglaHunt Desk: State governments have already suffered huge losses due to corona infection. This time the states applied for arrears of GST to the Modi government. The matter was supposed to be raised at a separate GST Council meeting which was canceled due to lockdown. The states also plan to raise the issue separately with the Center.

The finance ministers of states including Kerala, West Bengal, Punjab and Delhi raised the issue of cash during a video conference with Prime Minister Narendra Modi. They said the funds would be used to support MOSMEs and the service sector, which has been hit by the Corona epidemic.

At the meeting, Punjab Finance Minister Manpreet Badal demanded the first compensation. Kerala and Delhi also spoke of additional funding at the meeting. West Bengal said they did not receive enough money and pressed for immediate payment of GST arrears. The state also sent a letter to West Bengal Finance Minister Nirmala Sitharaman asking for a CSR tag for the Chief Minister's relief fund grant.

Incidentally, state GST compensation is pending from December 2019. The Center had paid the second installment of Rs 34,053 crore in arrears for October and November 2019 at the beginning of April this year. As a result, the state still owes a lot to the Center.