Tamil Nadu asks govt to settle Rs 56-bn IGST dues, give Rs 20-bn assistance

Tamil Nadu CM Edapaddi K Palaniswamy on Monday met PM Narendra Modi at New Delhi and submitted a 20-point memorandum

Tamil Nadu has asked the Ministry of Finance to settle Rs 54.26 billion Integrated Goods and Services Tax (IGST) for 2017-18 and the ad hoc settlement of IGST due for September 2018 immediately. Besides, the state also said that it should be compensated with a special assistance of Rs 20 billion for the unfair treatment that the state received under the 14th Finance Commission. 

Tamil Nadu Chief Minister Edapaddi K Palaniswamy on Monday met Prime Minister Narendra Modi in New Delhi and submitted a 20-point memorandum, seeking over Rs 400 billion for various schemes and projects. In the memorandum, it was stated that GST operates on the destination principle.

The IGST collected is meant for distribution between the Centre and the states. Approximately, 50 per cent of the IGST will accrue to the Centre and 50 per cent to states. The states would receive IGST in proportion to the consumption of goods and services on the destination principle. 

However, a significant shortfall in the settlements of amounts due to Tamil Nadu was found and accordingly the state has asked the finance ministry for early settlement of the unsettled IGST to Tamil Nadu, which was to the tune of about Rs 56 billion.