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CG CM Urges Centre to Extend GST Compensation Scheme, Seeks Support from 17 States

Story Highlights
  • CM Baghel write to 17 states including BJP ruled and AAP ruled Delhi seeking support.
  • According to Baghel, CG would face major revenue loss if the GST compensation scheme was revoked.
  • Centre announced to stop compensation under GST scheme from June 2022 onwards.

Raipur: CG CM Baghel has written to 17 states urging them to join him in raising a demand to the Centre to continue with the GST compensation for the next decade. The Congress leader wrote in this connection to the CMs of Maharashtra, Jharkhand, Rajasthan, Punjab, West Bengal, Odisha, Andhra Pradesh, Telangana, Tamil Nadu, Kerala, AAP-governed Delhi, BJP ruled states – Madhya Pradesh, Uttar Pradesh, Gujarat, Karnataka and Haryana – as well as Bihar, where the saffron party is a ruling alliance partner.

“I have written a letter to the Chief Ministers of 17 states requesting that a common request should be made to the Central Government to continue the compensation for ten years,” the Congress leader tweeted.

“Being manufacturing states, our contribution to the growth of the country’s economy is much higher than those states which have benefited from the GST regime due to higher consumption of goods and services,” he added. According to him, if the GST compensation is not continued beyond June 2022, then the state would endure a revenue loss of approximately Rs 5,000 crore in the upcoming fiscal. He further added that after the introduction of the GST regime, the autonomy of states on tax policy has significantly reduced.

This urge from CM came after the Central government decided that the compensation of GST given to the states will be stopped from June 2022 onwards. 

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