Telangana State on Tuesday made a strong case for immediate release of Integrated Goods and Services Tax (IGST) dues of Rs 2,641 crores to the State by the Union government before the next Goods and Services Tax (GST) Council meeting to be held on October 5, 2020.
Finance Minister T Harish Rao, participating in the Group of Ministers meeting presided by convener and Bihar Deputy Chief Minister Sushil Kumar Modi through video conference on IGST settlement, was categorical in stating that the amount was needed to fight Covid-19 in the State.
Stating that the release of funds from the Centre will come as a major relief to States that are battling Covid-triggered financial problems, Harish Rao said: “It is important that the recommendation gets its approval before the Council meeting, failing which we will have to wait for another three months for the release of IGST funds.”
Responding positively, Sushil Kumar Modi assured Harish Rao that the group will meet again on October 1, 2020 well in advance of the Council meeting.
During the discussion, the Miniter said Telangana and 16 other States were supposed to receive IGST payments to the tune of Rs 25,058 crore. He suggested that Rs 1,015 crore from Consolidated Fund to be collected from States can be adjusted against future payments. “The compensation fund to be recovered from 18 States can be adjusted in future,” he said.
Pointing out that the GST council had calculated that Telangana should receive Rs 2,638 crore in IGST payments while it should be Rs 2641 crore, he said the State officials will consult Delhi regarding the missing Rs 3 crore from the IGST payments. “However, we are not really worried about that small discrepancy, but the Group of Ministers must recommend full IGST payment to all the States before the next GST Council meeting,” Harish Rao told the Convener of the GoM.
Principal Secretary (Finance) K Ramakrishna Rao, Commissioner of Commercial Taxes Neetu Kumari Prasad and senior officials from finance and commercial taxes department participated in the meeting.