West Bengal is yet to get GST compensation for last three months despite repeated request to Centre. This was disclosed on Tuesday by state finance and industries minister Amit Mitra after a pre budget meeting with the chambers. Mitra pointed out that state has not received GST compensation for October, November and December. The total shortfall in collection for these months is around Rs 2,000 crore. GST compensation for August and September also was released late. Incidentally, as per GST regulation, if the GST collection falls below 14% growth of the last year in month to month basis then states will get a compensation. This would be valid for five years since the roll out of GST. “GST we are not in good shape. There is below 14% growth but not getting compensation. This is our constituional right and CM has also communicated to PM about this dues,” he added.
Mitra also cautioned about stagflation like situation prevailing in the economy where inflation is being coupled with unemployment. “It has never happened in India. In US there was stagflation once in mid seventies.” he added. Commenting on the meeting with chambers, Mitra added that there was 60 representatives from 19 chambers that included national chambers like FICCI, CII, Assocham, other leading chambers like ICC, MCC, Bharat Chamber, BNCCI and district level chambers. “It was a very good meeting. They are asking to do something to support production,” he added. According to Mitra, there was discussion in issues like assessment of demand for training in different sector, skill development, entrepreneurship development along with others. “The banks will give Rs 70,000 crore credit to small businesses this year, we have already trained the officers in district industry centres (DIC) by IIM, Kolkata,” he added.