According to a report by the news agency PTI, a senior official of the Maharashtra financial department stated that if the Union does not extend the GST compensation from July this year, the state which pays the foremost taxes will lose INR 30,000 crore yearly.
Based on the account, the GST Act guarantees states bi-monthly compensations for losses in revenue in the first five years of its implementation. It has been reported that the shortfall is calculated assuming a 14 per cent yearly growth in GST collections by the state in the base year of FY16.
For those unversed, the five-year duration will end in June 2022 since the uniform tax code was brought into force on July 1, 2017.
It has been reported that while many states have been asking for an extension, no assurance has been accorded. On the other hand, Maharashtra is reported to contribute nearly 15 per cent of the aggregate central GST collection that is given to the Central government.
The official was quoted in the narrative elaborating on how if the centre refutes to extend the GST compensation Maharashtra will face INR 30,000 crore revenue loss. The official added that in 2020-21, the Union collected INR 46,664 crore from Maharashtra, but a mere INR 521 crore was then received by the state.
On the other hand, on Wednesday, April 27, Maharashtra Chief Minister, Uddhav Thackeray said that the Centre owes INR 26,500 crore to the state.
Thackeray reportedly elucidated that Maharashtra collects the highest GST of 15 per cent in India. Combining both direct taxes and GST, Maharashtra is the number one state in the country. However, the state is still owed about INR 26,500 crore in GST arrears, Thackeray exclaimed.
Also Read: MVA VS Centre: "State Suffered A Loss Of Rs 1000 Crores," Dy CM On Fuel Tax Reduction
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