DMK president M.K. Stalin on Sunday urged the Tamil Nadu government to press for voting at the 42nd GST council meeting slated for Monday (October 5) to compensate the States for the loss of revenue due to the implementation of the tax regime.
“The voting should be on the Centre, which has reneged on its promise to compensate the States. Chief Minister Edappadi K. Palaniswami should realise that merely writing a letter will not secure compensation,” Mr. Stalin said.
Recalling Union Minister of State for Finance Anurag Singh Thakur’s reply to DMK member P. Wilson that Tamil Nadu’s due was ₹11,269 crore, Mr. Stalin said at a time when the State’s finances were in a bad shape, the failure of the Chief Minister to get the Constitutionally guaranteed compensation was dangerous to the financial sovereignty of State.
Objection by States
Pointing to reports that the GST meeting would discuss borrowings from the market and the extension of time for cess on compensation, Mr. Stalin said many States had objected to the Centre giving up its responsibility.
“But the Chief Minister, in his letter, has suggested borrowing by the Centre or releasing the amount from the Consolidated Fund of India to compensate for the implementation of the GST. He has no courage to tell the Centre that its decision was against the rights of the State on finances or to press for voting,” Mr. Stalin said.
