Attorney General to Be Consulted on Centre vs State GST Row, Again

This is the second time the Attorney General will be consulted in the matter in two week.

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Politics
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Attorney General To Be Consulted On Centre Vs State GST Row Again
i

The centre vs states row over the 2.35 lakh crore rupees due in GST compensation and COVID-related relief payments will be placed before the Attorney General, Finance Ministry officials told a parliamentary panel, reports NDTV.

This is the second time in two weeks that the Attorney General will be consulted on the issue.

Concerns have been repeatedly raised by opposition MPs on the issue of how to pay out GST compensations that are due.

The Centre is currently struggling to pay the full GST compensation amount of Rs 97,000 crore due to slowdown in tax collection caused by the coronavirus pandemic and the resultant lockdown.

This also comes in the context of data released on 31 August which showed that the Indian GDP had contracted by 23.9 percent.

The Centre, which had written to state promising to clear its GST dues, then asked them to borrow from the market.

Thereafter, at least six non-BJP Chief Ministers, including Kerala's Pinarayi Vijayan and West Bengal's Mamata Banerjee had written to the Prime Minister, reminding him of his "constitutional responsibilities".

In August, Attorney General KK Venugopal was asked by the Centre on the if it was bound to pay GST compensation in full despite a shortfall caused by the pandemic.

"The Centre is bound to pay the states full compensation irrespective of any shortfall," he had said at that time.

(With inputs from NDTV).

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