CG Appeals Extension of GST Compensation Scheme
- CG minister writes to Finance Minister seeking extension of GST Compensation.
- Pitched for an extension of five years.
- Centre announced to end GST compensation by June 30th.
Bengaluru: Chhattisgarh has sought extension of Goods and Services Tax (GST) compensation to states for at least five years beyond the June 30 deadline.
The appeal came through a letter by TS Singhdeo, Chhattisgarh’s cabinet minister for commercial tax to Union finance minister Nirmala Sitharaman ahead of the meeting on June 28-29.
Unable to attend the GST council meeting being under home isolation since been tested positive for COVID-19. Wrote to Honorable Union Minister of Finance Ms Nirmala Sitharaman with key point agendas on behalf of Chhattisgarh and other mining & manufacturing states, Deo tweeted on Tuesday.
Chhattisgarh’s Singhdeo said that manufacturing and mining states, which are not consumers, suffer revenue loss under GST. In case the GST compensation to states is not continued, the states must have a greater share of the GST revenues, he added.
He pitched for another five year of extension of compensation for states. It is learnt that the state has suffered ₹4127 crore notional loss in 2021-22 on 10 items including iron and steel, coal, paddy, and tendu leaves, since these got subsumed in GST compared to the revenue from these items under the value added tax regime.