KCR calls for release of ~4,531 crore in GST dues

Telangana chief minister K Chandrasekhara Rao on Saturday urged Union Finance Minister Nirmala Sitharaman to release ~4,531 crore in GST tax dues pending from the Centre.

In a letter to Sitharaman, Rao explained the state's position regarding the pending dues and the shortfall in Central devolutions.

"As per Union Budget 2019-20, the tax devolution to Telangana is ~19,719 crore, which is 6.2 per cent more than ~16,451 crore received by the state during 2018-19. But, the state has received an amount of ~10,304 crore only till November, which is lower by ~224 crore, or 2.12 per cent, than the (receipts during the) same period last year. S o, instead of receiving an enhanced amount, the state has received less," Rao stated, while expressing fears of another reduction in tax devolution on account of the economic slowdown, which has extended to the second quarter.

In a recent meeting with Central government officials in Delhi, the state's representatives were told that the shortfall in Central devolutions could be as much as 15 per cent due to the economic slowdown during the current financial year, Rao said.

According to the CM, the economic slowdown has already resulted in lower GST collections compared to the benchmark growth of 14 per cent, and an amount of ~1,719 crore is due as compensation as mandated under the GST Act. The state has received GST compensation for the first four months only this financial year.