Telangana Finance Minister T Harish Rao demanded the Centre for immediate release of Integrated Goods and Services Tax (IGST) dues of Rs 2,641 crores to the state before the next Goods and Services Tax (GST) Council meeting to be held on October 5.
Harish Rao was participating in the Group of Ministers (GoM) meeting presided by convener and Bihar Deputy Chief Minister Sushil Kumar Modi through video conference on IGST settlement on Tuesday.
Emphasising that the amount was needed to fight Covid-19 in the state, he said the release of funds from the Centre will come as a major relief to states that are battling Covid-triggered financial problems. Stressing the importance of recommendations to get its approval before the Council meeting, Harish Rao said “failing which we will have to wait for another three months for the release of IGST funds.”
Responding to the argument, Sushil Kumar Modi assured Harish Rao that the group will meet again on October 1 well in advance of the Council meeting.
The Minister brought to the notice of the GoM that Telangana and 16 other States were supposed to receive IGST payments to the tune of Rs 25,058 crore.
Suggesting that Rs 1,015 crore from Consolidated Fund to be collected from States can be adjusted against future payments, he said “the compensation fund to be recovered from 18 States can be adjusted in
future”.
He pointed out that the GST council had calculated that Telangana should receive Rs 2,638 crore in IGST payments while it should be Rs 2641 crore.
Stating that the state officials will consult Delhi regarding the missing Rs 3 crore from the IGST payments, he made it clear that “we are not really worried about that small discrepancy, but the Group of Ministers must recommend full IGST payment to all the States before the next GST Council meeting.”
