Several other states, including Uttarakhand, Kerala, and Rajasthan, also demanded Thursday to pay compensation from the Center over the reduction in revenue collection from the Goods and Services Tax (GST).
Uttarakhand Agriculture Minister Subodh Uniyal, representing his state in the 41st meeting of the GST Council organized in a virtual manner, said that the new indirect tax system has reduced the tax collection. He said that the coronavirus epidemic has exacerbated this problem, in which case the Central Government should immediately pay GST compensation.
The Government of Kerala termed the two options put before the GST Council to meet the compensation as unacceptable. Kerala Finance Minister Thomas Issac said that in both cases states would have to sacrifice some part of their compensation. He tweeted, "Full compensation is the constitutional right of the states."
The Rajasthan government asked the Center to pay the pending GST compensation of Rs 6,69,000 crore to the state. State Energy Minister BD Kalla said in the council meeting that the GST compensation of Rs 6,694.43 crore is owed to the state. They demanded the immediate release of it.