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Haryana requests Centre to pay Rs 5,840 crore GST compensation

While participating in the 41st GST Council on Thursday through video-conferencing, the deputy chief minister requested the Centre to provide maximum financial support to Haryana, as the COVID-19 pandemic has adversely affected the economy of the state

twitter-logoPTI | August 28, 2020 | Updated 20:41 IST
Haryana requests Centre to pay Rs 5,840 crore GST compensation
Haryana demanded Rs 5,840 crore as GST compensation

Haryana Deputy Chief Minister Dushyant Chautala has requested the Centre to pay the state's GST compensation of Rs 5,840 crore at the earliest that has been pending for the past four months, according to an official statement issued on Friday.

While participating in the 41st GST Council on Thursday through video-conferencing, the deputy chief minister requested the Centre to provide maximum financial support to Haryana, as the COVID-19 pandemic has adversely affected the economy of the state.

He demanded that the loss of revenue should be compensated to the states even after the period of 5 years of GST, in 2022.

Chautala said Haryana is a leading state in terms of manufacturing and exports.

He added that before the goods and services tax (GST) regime, "the state used to get maximum revenue in the form of tax on products". The revenue collection across the state has been adversely affected after the implementation of the GST system, he said.

The states where products are being sold are getting more benefits of GST, the deputy CM added. The revenue of the state has also been affected due to the COVID-19 pandemic, he further said during the meeting.

Chautala drew the attention of the GST Council towards the provisions of the constitutional amendments wherein Parliament is entrusted with the responsibility of ensuring the payment of compensation to the states.

"Parliament should come forward regarding this matter," he said, as per the statement.

He also underlined that the Council must focus on raising the revenues as a long-term solution to the problem of revenues deficit.

Dushyant Chautala, a Jannayak Janta Party (JJP) leader, also requested the GST Council to hold a meeting of the Council where participants are present, "so that the representatives of all the states can present their views in a better and effective manner".

While Haryana has a BJP-JJP coalition government, amid a chorus by non-NDA ruled states for compensation of GST revenue shortfall, the Centre on Thursday told states that the estimated deficit of Rs 2.35 lakh crore this financial year can be bridged by borrowing.

The Centre also made a distinction between revenue lost due to the implementation of the GST and the economic slowdown arising out of the COVID-19 crisis. The government said its legal obligation is only to compensate states for losses arising out of the GST roll-out.

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