May 29, 2021 12:55:34 am
During the 43rd GST Council meeting chaired by Union Finance Minister Nirmala Sitharaman, Deputy Chief Minister and Finance Minister Ajit Pawar on Friday asked the Centre to grant Rs 24,000 crore GST compensation.
The Maharashtra government also sought tax relaxation for Covid-related medical equipment and drugs and a share from the cess collected by the Union government on fuel.
The Deputy CM said that the total compensation payable to the state for 2020-21 is around Rs 46,000 crore. So far, the state has received around Rs 22,000 crore.
Hence, for financial year 2020-21 compensation of around Rs 24,000 crore is pending. Considering the financial position of the state amid the Covid pandemic, balance compensation may be given immediately, he said.
Pawar also said that the amount collected out of cess and surcharges levied on petrol and diesel exclusively available to the Government of India — slated to be Rs 3.3 lakh crore for 2020-21 — should be shared with states to strengthen the fight against the pandemic.
He also asked for a five-year extension to the period of GST compensation cess given by the Union government to all states. “The economic impact of the Covid-19 pandemic cannot be nullified in one or two years. The period of revenue protection and compensation for loss should be extended for another five years from 2022-23 to 2026-27,” he said.
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