FPJ Exclusive: Maharashtra FM Jayant Patil may press for extension in GST compensation beyond 2022

Sanjay JogUpdated: Tuesday, December 17, 2019, 09:34 PM IST
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Nagpur: Amidst falling GST collection and delays from the Centre on disbursement of compensation, state Finance Minister Jayant Patil will attend the GST Council on December 18 and seek timely disbursement of compensation and dues.

Patil may submit the state government’s view on GST Council’s proposal, if any, to increase standard rate. He is also likely to press to extend payment of compensation beyond 2022.

Against the annual increase of 14% in GST collection, it has been ranging between 6.66% and 10.8% in Maharashtra.

The shortfall in the mobilization of GST is putting pressure on the state finances. The state government has set an ambitious target of GST collection of Rs 1,13, 260 crore and Rs 39,378 crore for VAT 2019-20.

However, due to present economic slowdown, the GST receipts till November was Rs 55,142 crore against Rs 56,619 crore during the corresponding period last year. The government has estimated a shortfall of Rs 10,000 to 15,000 crore in GST collection if economy does not revive.

State finance department officer told FPJ,’’ If the shortfall in GST receipts continues and there will be delay in disbursement of compensation by the Centre, the state government will have to do a lot of circus. The budgetary allocations are being made expecting increase in the GST receipts and timely compensation from the Centre.’’

He said the government has released compensation of Rs 4,000 crore against total dues of compensation and devolution of other taxes of Rs 15,558 crore.

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