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  Metros   Mumbai  12 Dec 2019  Maharashtra requests Rs 15,000 crore in dues

Maharashtra requests Rs 15,000 crore in dues

THE ASIAN AGE.
Published : Dec 12, 2019, 2:21 am IST
Updated : Dec 12, 2019, 2:21 am IST

As per the Union Budget 2019-2020, the tax devolution to Maharashtra is Rs 46,630.66 crore, which is 11.15 per cent.

Nirmala Sitharaman
 Nirmala Sitharaman

Mumbai: The Maharashtra government has requested the central government to release the pending amount due to tax devolution as well as compensation for the Goods and Services Tax (GST).

Chief minister Uddhav Thackeray wrote a letter in this connection to Union finance minister Nirmala Sitharaman Wednesday.

 

According to the letter, the state is waiting for its legitimate dues of Rs 15,558.05 crore from the Government of India.

The letter reads, “As per the Union Budget 2019-2020, the tax devolution to Maharashtra is `46,630.66 crore, which is 11.15 per cent more than the `41,952.65 crore received by the state during 2018-2019. But the state has only received an amount of `20,254.92 crore  till the month of October 2019, which is `6,946.29 crore (-25.53 per cent) as compared to the budget estimate for the year 2019-2020. So, instead of receiving an enhanced amount, the state has received less than the budgeted amount.”

The letter points out that due to the slowdown in the economy, there is a shortfall in GST collection compared to the benchmark growth of 14 per cent.

 

“During the current financial year, we have received `5,635 crore as GST compensation for the first four months only. However, an amount of `8,611.76 crore is due as GST compensation up to November 2019,” the letter notes.

Earlier in the day, Sena legislators demanded in the Lok Sabha that the Centre release GST dues to the state.

It is pertinent to note that when GST was introduced beginning July 1, 2017, the Union government had assured the states through legislation that the revenue shortfall arising from their taxes being subsumed in the new indirect tax would be compensated fully for the first five years.

Tags: goods and services tax, uddhav thackeray