TN lost Rs 4,073 cr due to Centre’s GST fund allocation formula: Governor
He added the matter has been referred to a Group of Ministers by the GST Council and he sought for an early favorable decision
CHENNAI: Tamil Nadu Governor Banwarilal Purohit on Monday said the 14th Finance Commission’s devolution formula has resulted in a net loss of Rs 4.073 crore to the state. He ueged the Centre to settle the dues.
“Tamil Nadu has so far received Rs 7,096 crore as GST compensation. Central government grants of Rs 17,957.31 crore have also been received. However, there are a few outstanding issues in the release of dues to Tamil Nadu,” he said In his customary address to assembly.
In the first year of implementation of GST in 2017-18, instead of distributing 50 per cent of the unallocated IGST in proportion of SGST collection in various states, the government of India incorrectly appropriated the entire unallocated portion of IGST to the tune of Rs 88,344.22 crore to the Consolidated Fund of India and distributed 42 per cent of this to the states as per the 14th Finance Commission’s devolution formula.
“This resulted in a net loss of Rs 4,073 crore to Tamil Nadu and we are insisting on the immediate release of this amount due to our state,” said the Governor.
He added the matter has been referred to a Group of Ministers by the GST Council and he sought for an early favourable decision.
Source- Business Standard.
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