GST compensation: Oppn-ruled states claim Rs 55,000-cr underestimation

Key Opposition-ruled states have strongly contested the Centre's goods and services tax (GST) shortfall estimation for FY22 and claimed an underestimation of at least Rs 55,000 crore in the projections.

They have also sought an additional compensation of Rs 65,000 crore for FY21. The states argue that the actual revenue growth in the 10 months of April-January was negative against a 7 per cent expansion estimated by the Centre last year. “We do not agree with the Centre’s estimation related to the GST compensation requirement for FY22. It has underestimated the compensation requirement by at least Rs 55,000 crore and it