Centre asked to clear pending ` 24,000 cr GST compensation

DCM proposes tax relief with respect to Covid-related medical supplies

Amid revenue shortfall due to the coronavirus induced lockdown and economic downturn, the Maharashtra Deputy Chief Minister Ajit Pawar, who holds the finance and planning department, on Friday urged the Centre to immediately release the pending GST compensation of Rs 24,000 crore for the year 202021. tation at the virtual 43rd GST Council meeting chaired by the union finance minister Nirmala Sitharaman.

Pawar said during the current financial year 2021-22 Maharashtra is grappling with Covid situation and lockdowns. “Assumptions for calculating GST compensation appear to be over optimistic. It is requested that they may be re-examined and corrected so that the state receives adequate compensation and is not left with large arrears like in 20-21,’’ he noted.

Pawar made a strong case for increase in the period of revenue loss compensation. “Economic impact of pandemics cannot be nullified during one or two years hence it is proposed that revenue protection and compensation for loss may be extended for another 5 years that is for FY 2022-23 to 2026-27,’’ he said.

Pawar has proposed tax relief with respect to Covid-related medical supplies. The Covid pandemic costs more than 3 lakh lives across India. To overcome the pandemic and safeguard human life, the Government has rolled out Covid-19 vaccination.

The vaccination program will be taken phase-wise. Against this backdrop, the state is fully committed to vaccinating all of its citizens. Against this background it is important that maximum relief be given with regard to the taxation of these items so that more and more lives are saved.

“I urge you to provide whatever concessions possible which shall remove any financial burden on citizens/state and at the same time reach more and more people, rich or poor,’’ he said. He said medical grade oxygen, oxygen concentrator, pulse oximeter and Covid testing kits are directly used in Covid intervention by common people and therefore tax rate reduction proposed before is proper.