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Telangana asks Centre to pay ₹2,812-crore in IGST dues

Our Bureau Hyderabad | Updated on November 06, 2019

T Harish Rao

The Telangana government has asked the Centre to pay it the Integrated Goods and Services Tax (IGST) dues of ₹2,812 crore under devolution of IGST.

In a letter, Telangana Finance Minister T Harish Rao appealed to Union Finance Minister Nirmala Sitharaman to expedite the release of the State’s share from the IGST kitty of ₹1,76,688 crore that the Centre had transferred to Consolidated Fund of India.

“Instead of distributing it to the States in ad hoc settlement, the Centre has decided to transfer the amount to the Consolidated Fund,” he said. Telangana is one of the few States that failed to receive its complete share of compensation (for the revenue shortfall due to implementation of GST) from this amount.

He reminded that the Centre and States should share the IGST proceeds 50:50. Under this formula, the States should get a sum of ₹88,344 crore to be distributed among themselves and not ₹67,998 as computed by the Centre. “We are entitled to receive an amount of ₹3,560 crore based on an ad hoc settlement rate of 4.03 per cent. Besides, under the devolution formula (distributing 42 per cent from its share to States), we are eligible to get a share of ₹904 crore,” he said.

On these two counts, the State should have received ₹4,464 crore but got only ₹1,652 crore.

“The Centre owes us the balance amount of ₹2,812 crore,” he said in the three-page letter.

Published on November 06, 2019

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