Opposition says non-BJP states not getting GST dues, Nirmala Sitharaman says don’t politicise

“There is a given formula in place since the time GST was implemented… For a body like the GST Council, in which every Finance Minister from every state sits and takes a call, it’s a collective decision… we don’t need to politicise this,” she said.

Sitharaman’s comments came after MPs from states such as Tamil Nadu and Maharashtra complained about the non-payment of GST dues by the Centre.

BJP MP from Andhra Pradesh, Y S Chowdary, too spoke on the issue. “The GST compensation for 2020-21 and 2021-22 is yet to be paid to the various states while the GST collection is showing an upward trend. As far as Andhra Pradesh is concerned, as per the (Finance Minister’s) reply, an amount of Rs 1,524 crore is yet to be released.’’

Tamil Nadu MP and DMK leader P Wilson said there was a crisis in his state as the Centre owes it Rs 20,287 crore under 38 heads, including GST compensation of Rs 9,842 crore.

Calling the non-payment of GST dues “breach of trust” on part of the Centre, he said: “When the Union Government took away the power of the States to collect indirect taxes by legislating the GST Act, it was on the promise the States’ shares would be promptly paid. The Union Government is committing breach of trust and is violating the undertaking made on the floor of Parliament.’’

Echoing Wilson’s views, NCP’s Vandana Chavan, in a supplementary question, cited the lack of funds to Maharashtra. “Maharashtra generates the highest revenue for the kitty of our country. However… we see the maximum figure which says compensation yet to be released for Maharashtra… which is a whopping Rs 11,563 crore…,” she said, adding the situation was the same in many other states not ruled by the BJP.

Responding to Chavan’s allegations, the Finance Minister said disbursements are decided by the GST Council. “It is very well to point out that Maharashtra has a very big amount due. But the two other columns will also say that in the distribution as well, the share of Maharashtra is as per the formula. No discretion. It has been fairly higher compared to the other States.

“No individual has the right to tweak the formulation and, therefore, there is no differentiation made on the basis of this party or that party. It is an insult to the GST Council, which is a federal body in which every State has its own Finance Minister sitting and deliberating,” Sitharaman said.