Harish Rao insists on GST compensation for every two months

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Finance Minister Harish Rao is seen participating in virtual meeting with Union Finance Minister on GST compensation.
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Telangana Finance Minister Harish Rao has sought the GST payments for every two months under Section 7(2) of the General Services Goods and Services (Compensation to States) Act 2017.

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Participating in the virtual meet of the GST Council headed by the Finance Minister Nirmala Sitharaman here today, Harish Rao insisted that the payment be made from the Compensatory Fund from which the Cess amount along with recommended amount should be deposited into the state compensation fund.

He further sought the council to discuss on loans taken are reflecting under Option-1 and Option-2 as per Section 10(1). The compensation of Rs.1,10,000 crore to be made under the Option-1 was revised to a sum of Rs2,83,000 crore under Option-2. “Hence, the difference was only Rs73,000 crore which is not a big amount and can be paid this difference along with the amount in the Option-1”, said the minister.

Harish Rao while referring to the Chattisgarh CM’s remarks that the loans taken to make the GST compensations don’t come under Article 293. The 15th Finance Commission while giving its nod to it has reduced the state’s payments from Rs. 2,43,000 to Rs2,13,000. With this act of government, the state like Telangana, Maharashtra, Karnataka is incurring losses, he pointed.

Harish Rao has also demanded the Centre to release a one-time grant of Rs723 crore to the Telangana State as recommended by the 15th Finance Commission under the Devaluation Grant.

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