The JD(U) on Friday targeted the Centre over the issue of GST compensation to states. “The VAT system was much better as it was the state government that used to collect it. Not only did it (the Centre) stop compensating for replacing VAT with GST, but it also levied five per cent GST on hospital beds and some life-saving drugs,” JD(U) spokesperson Sunil Singh said. “Ever since GST was brought in 2017, the Centre has so far given Rs 5,55,121 crore to all states and UTs. Of this, Bihar got only Rs 15,441 crore, which is 2.78 per cent of the total amount, whereas Bihar accounts for 8.6 per cent of total population of the country,” he added. JD(U) leader Rahul Kumar said: “We lodge a protest with the Centre on three counts — a state like Bihar feeling financial pangs after average Rs 4,000 annual compensatory fund getting withdrawn from this year, levying tax on essential items affecting the poor, and compensating Covid relief fund against GST compensation.” In response, BJP spokesperson Nikhil Anand told The Indian Express: “JD(U) has been crying foul for more GST share. Every state is being compensated as per recommendations of the 15th finance commission. Presently, revenue collected from GST is shared equally between the Centre and states. The collection from cess levied on luxury, demerit and sin goods is used entirely to compensate states for revenue loss due to GST implementation".
