Mitra accuses centre of delaying payment of compensation post GST

West Bengal Finance Minister and GST Council Member Amit Mitra on Wednesday accused the centre of violating the state's constitutional right to receive compensation in time after the implementation of Goods and Services Tax (GST).

He claimed that his state has, so far, received Rs 1,000 crore from the centre on account of compensation due to shortfall of revenue against an estimated compensation of Rs 1,850 crore in the six months post GST.

"Centre is supposed to compensate states on account of revenue shortfall in the GST regime. We are supposed to receive Rs 1,850 crore as compensation in six months. We have received Rs 1,000 crore so far and Rs 850 crore has not been realised," Mitra told reporters here.

"They have to pay as this is centre's constitutional duty and this is our constitutional right. We find our constitutional right has been violated with Rs 850 crore not being paid," he added.

On the restructuring of state's debt burden, he also said the Chief Minister Mamata Banerjee urged the 14th Finance Commission to do this.

"You (centre) have not considered the states which are debt ridden as announced by 13th Finance Commission," he said.

Mitra also alleged the centre's decision to change the date of devolution of state's share of central taxes from the first of every month to the 15th was creating problems to the state.

"It was done unilaterally. They change the date from first of every month to 15th with no consultation with the states. Every state has payment obligations from the beginning of the month. How could we meet these obligations?" he asked.

Banerjee also urged the centre to reconsider the change.

"I am raising this from the federal structure point of view. All the governments are facing this problem and the centre should reconsider this," she said.

Banerjee also reiterated GST was implemented "hurriedly" and demonetisation was a "demolition of economic system".

--IANS

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