States Worried Over Delay In GST Compensation

‘With the tax accounting for 60% of States’ income, the dues could disrupt budgets’

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Five opposition-ruled States on Wednesday expressed concern over delay in GST compensation for the August-September period.

These States -- Punjab, Kerala, Delhi, Rajasthan and West Bengal -- said in a joint statement: “The GST compensation for the month of August and September, required to be paid by the Central government sometime in October, continues to be outstanding till date”. The States, under the banner of Empowered Committee of States’ Finance Ministers, met here. They alleged that no explanation has been offered for the delay. “As a result, the States are facing acute pressure on their fiscals, some are already resorting to other ‘ways and means’ or even overdrafts,” the statement added.