Five state finance ministers lash out at Centre over delay in GST compensation

Five opposition-ruled states on Wednesday hit out at the Centre over delays in releasing GST compensation saying their finances are in dire strait due to delays.

AAP-ruled Delhi, TMC-run West Bengal, Congress-ruled Punjab and Rajasthan and Left-run Kerala in a joint statement said compensation since August is pending, making running administration difficult in the states.

When the Goods and Service Tax (GST) subsumed 17 different central and state levies from July 1, 2017, states were promised that they will be compensated for any loss of tax revenues for five years due to the introduction of the new levy. The compensation was to be paid on a monthly basis but the same has not bee released so far for the months of August and September and that of October would be due soon.

In all, some Rs 10,000 crore is due to the five states, the finance ministers of the opposition ruled states said.

BJP-ruled states too would not have got compensation but they haven't yet spoken about it.

The central government has so far commented on the issue nor has it given out reason for the delay.

Speaking to reporters, West Bengal Finance Minister Amit Mitra said, "We thought we will make an appeal to Union Finance Minister (Nirmala Sitharaman) saying that she must personally look into this and not violate the constitutional provisions as passed by Parliament of India."