- Pitches for continuation of GST compensation for the next 10 years
- Appeals Center to make alternate permanent arrangements for compensation of revenue to the manufacturing states
- Manufacturing states will suffer huge loss due to discontinuation of GST compensation grant
- Public welfare and development works will be affected
- Chhattisgarh will suffer revenue loss of Rs 5000 crores every year
Raipur (thestates.news) | Chief Minister Bhupesh Baghel has written a letter to Prime Minister Narendra Modi seeking extension of GST compensation grant. He has urged the Prime Minister to continue the present system of GST compensation for the next 10 years. The Chief Minister has also mentioned in his letter that the Central Government should make an alternative permanent arrangement for compensation of revenue to the producing states at the earliest.
Stating that discontinuation of GST compensation grant is a huge economic loss for producing states like Chhattisgarh, Chief Minister Bhupesh Baghel said “being a manufacturing state, our contribution in the development of the country’s economy is much more than those states which have been benefited in the GST tax system due to higher consumption of goods and services. If the GST compensation is not continued beyond June 2022, then Chhattisgarh is likely to face a revenue loss of nearly Rs 5 thousand crore in the upcoming year. Similarly, many other states will also face revenue shortfall in the coming year. Due to this, it would be difficult to arrange for a shortfall in funds for the ongoing public welfare and development works in the state.”
In his letter, Chief Minister Bhupesh Baghel also gave reference of the pre-budget consultation meetings for Budget 2022-23 chaired by the Union Finance Minister with the Chief Ministers and Finance Ministers, which was held in New Delhi on December 2021. He said adding that many states including Chhattisgarh requested to extend GST compensation grant for the states in the said meeting. The states expect a positive decision from the central government in this regard.