Telangana Politicising Demanding Full GST Compensation?

 - Sakshi Post

The Telangana government said that the center had no choice but to pay full GST compensation to the states and said that the southern state has lost around Rs 8,000 crore revenue over the past four months due to the coronavirus induced lockdown.

Finance Minister T Harish Rao asserted that the state government opposes the proposals of the central government to reduce GST compensation to the states. He said that there is no mention of either COVID-19 or any other national calamity in the GST Act. The Centre shall deposit the same in the Consolidated Fund where the GST cess or IGST amounts are surplus. The Centre wants the states to increase the loans where there is a shortfall in the sum.

Harish Rao said that this is intolerable and centre should pay the GST compensation to the states. He further added that, "To protect the national interest, we have joined GST. Telangana's growth rate was 22 percent before the implementation of GST. If Telangana would not have joined GST then it would have saved Rs 25,000 crores in three years."

According to the legal frame work, this is true but now the question is,  TRS pressuring BJP and wants to create problems for the saffron party is the most sought after question. On the other hand, KCR is focussing on national politics. The Telangana government is saying that during this coronavirus pandemic, a total of 55,638 crores have been spent on the welfare schemes.

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