Maharashtra Deputy Chief Minister Ajit Pawar. (File)Maharashtra Deputy Chief Minister Ajit Pawar said Wednesday that the Goods and Services Tax (GST) dues received from the Centre will be used to carry out development work and managing the finances to run the state government.
The Centre said on Tuesday it had released Rs 86,912 crore, including Rs 14,145 crore to Maharashtra, as GST compensation payable to 21 states across the country till May 31, 2022.
“The GST compensation funds would be utilised for developmental works undertaken by the state government. There are schemes which are undertaken to reach out to the needy and poor which would require funds,” said Pawar.
Responding to reporters earlier on whether the Maha Vikas Aghadi (MVA) government will curtain the tax on petrol and diesel now as it has received the GST dues, Pawar said these are not linked. Commenting on petrol and diesel prices he said, “The state government has already reduced the petrol prices by a little over Rs 2 per litre and diesel by Rs 1.45 per litre.”
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The state government is not going to divert GST compensation to offset the financial burden due to VAT reduction in petrol and diesel which was already implemented recently, he said. The GST amount will be used to fulfil the various development projects committed in the Maharashtra budget 2022-23, he added.
“The GST amount of Rs 14,145 crore received from the Centre was part of the compensation. The Centre still owes the state Rs 12,355 crore.”
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