[Marxistindia] Centre must pay the GST compensation dues to the states

[news from the cpi(m)]

July 29, 2020
Press Statement
 
The Polit Bureau of the Communist Party of India (Marxist) has issued the
following statement:
 
Centre Must Pay the GST Compensation Dues to the States
 
Four months after the last financial year, the Centre has finally paid the
GST compensation dues to the states upto March 31.  However, Finance
Secretary informed the Parliamentary Standing Committee that the government
is in no position to pay the GST share of the states as per the current
revenue sharing formula for this financial year, 2020-21.  
 
State governments were guaranteed compensation from the Centre for the first
five years of GST implementation.  This compensation was in lieu of GST
taking away the powers of states to levy some indirect taxes to raise
revenues.
 
This decision regarding the compensation to the states is part of the GST
legislation.  Its implementation was cleared by the GST Council.
 
For the Central government to now renege from these commitments is
tantamount to further centralization of authority, violating the federal
principles of our Constitution and depriving the states of their legitimate
revenues.  This is not acceptable.  These funds are all the more needed now
when the single-minded focus should be of combating the pandemic.  
 
The CPI(M) reiterates its earlier demand that the entire fund collected in
the name of combating the pandemic, in a non-transparent, non-auditable
private trust fund, bearing the name  of the PM, should be transferred to
the state governments who are in the forefront of the efforts to combat the
pandemic.  
 
The Polit Bureau of the CPI(M) demands that the GST compensation dues for
the first quarter of 2020-21, which has just ended, be transferred to the
states immediately.  It is absolutely essential to adhere to the earlier
commitments and more importantly to help the states to combat the pandemic
more effectively.  
 
 
 
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