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Tamil Nadu urges Centre to pay Rs 7,214 crore in GST dues to the state

Tamil Nadu officials have told media that the state is not receiving compensation every month like other states, which do not have the IGST problem

T E Narasimhan  |  Chennai 

Goods and Services Tax

has urged the to release dues to the state immediately. The state administration said that it was facing revenue deficit due to the devolution formulae devised by the

Governor Banwarilal Purohit said that a total of Rs 7,214 crore is pending under (GST).

The is yet to make the settlement of Rs 5,454 crore relating to 2017-18 and short payments on compensation of Rs 455 crore for 2017-18, and Rs 1,305 crore for the period from April to September 2018, which are adversely affecting the state finances.

"So, I urge the Central government to settle these dues at the earliest and ensure prompt release of dues in future,” said the governor in his customary address. He added that had successfully embraced the despite the challenges associated with the transition to a completely new tax regime.

The governor also expressed hope that the would uphold the principles of equity and efficiency, and give a fair deal in financial devolution to Tamil Nadu by the 15th

Tamil Nadu officials have told media that the state is not receiving compensation every month like other states, which do not have the problem. He expects to get only 40 per cent of out of Rs 5,909 crore, the total amount pending for last year.

The governor added that Tamil Nadu, despite being fiscally prudent, has been facing rising revenue deficit in recent years. He added that this was mainly due to the devolution formulae devised by the

Besides, implementation of (UDAY) and 7th recommendations have widened the revenue deficit.

Pointing out that Tamil Nadu had expressed concerns on various national legislations — such as suggesting amendments to National Medical Commission Bill, withdrawal of Dam Safety Bill, issues related to Motor Vehicles (Amendment) Bill, Electricity Bill and others, the governor said these concerns have been put forward by the state to uphold the interests of its people.

First Published: Thu, January 03 2019. 07:48 IST
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