(Image source from: Twitter.com/TelanganaCMO)
KCR Pens a Letter to Narendra Modi on GST Compensation:- Telangana Chief Minister K Chandrasekhar Rao (KCR) urged the Indian Prime Minister Narendra Modi to reverse and reconsider the decision made on GST compensation through borrowings. KCR said that the Centre can borrow the shortfall into the cess amount. KCR penned a letter to Narendra Modi on the same. KCR said that the entire debt servicing of the GST can be paid by the Centre from the collected cess for the extended period that is decided by the GST Council. KCR said that the decisions are made unanimously by the GST Council and he said that this tradition will continue in the future for the same. KCR expressed his confidence that Narendra Modi would consider his request and find the other proposal.
CM Sri KCR, in a letter addressed to PM Sri @NarendraModi ji, requested to reverse the Centre’s decision of asking the States to meet shortfall in GST compensation through borrowings and suggested that Centre should borrow on the strength of receipts into Cess amount. pic.twitter.com/UhU6xtC6lE— Telangana CMO (@TelanganaCMO) September 1, 2020
Kerala, Rajasthan, West Bengal and Chhattisgarh already rejected the option of the Centre on bridging the gap of the GST compensation. "Telangana government supported the introduction of GST as a national interest. There are long delays in the compensation payments and the states are not paid GST compensation from the month of April this year. The states received more fiscal space to facilitate the GST introduction. The Centre is abdicating its responsibility to compensate the states by taking the recourse to the legal opinion" said KCR in his letter.