The Congress on Wednesday raised in Rajya Sabha the issue of the Centre delaying payment of compensation to states for revenue shortfall in the Goods and Services Tax (GST) since August, saying this may lead to stoppage of development work and payments to employees.
Raising the issue through a Zero Hour mention, Pratap Singh Bajwa (Cong) said states gave up the right to levy taxes in the interest of 'one-nation-one-tax' regime of GST.
When the GST subsumed 17 different central and state levies in July 2017, states were assured that they will be compensated for any loss of revenue vis a vis pre-GST position, for the first five years of the introduction of GST.
Bajwa said initially the compensation was to be paid on a monthly basis and later once in two months.
But the compensation for August, September and October has been pending and it is end November with no sight of when it will be paid, he said.
Punjab, he said, is to receive Rs 2,100 crore in GST compensation and together with Rs 2,000 crore arrears its total dues are Rs 4,100 crore.
Delays in payment is "grossly unfair" for small states as it may "stall development work and payment of pensions," he said.