Tamil Nadu Chief Minister Edappadi K Palaniswami on Monday dismissed both the choices proposed by Union Finance Minister Nirmala Sitharaman with respect to Goods and Services Tax remuneration to the states. Mentioning his criticisms, Tamil Nadu Chief Minister shot off a letter to Prime Minister Narendra Modi looking for his mediation in the issue and asked him to give suitable bearings to the Ministry of Finance to return to their position on GST pay.
In a definite letter, Tamil Nadu Chief Minister Edappadi K Palaniswami stated, "Most states, and specifically, Tamil Nadu consented to the usage of GST and to help the enactment based on the unequivocal duty given by the Government of India to remunerate the States for any misfortune thus far, no payment has been delivered for the deficiencies in income assortment since April 1, 2020."
As indicated by the Tamil Nadu government, as on date, an absolute aggregate of Rs 12,250.50 crore needs to paid to the state as payment for a shortage in the GST assortments, of which Rs11,459.37 crore has accumulated from April to July 2020.
At the 41st GST Council meeting that was hung on August 27, the Union Finance Minister Nirmala Sitharaman offered two alternatives for the state governments to get from the market so as to meet the deficiency.
As indicated by Tamil Nadu Chief Minister, "Administration of India has a good and legitimate commitment to pay the remuneration for the deficiency in GST assortments. Both the choices recommended by the Government of India, the States are being needed to get from the market to make great the deficit in pay due. This is officially hard to execute and more costly. Further, the reasons being referred to for such a game plan are not convincing."
Chief Minister EPS likewise brings up the serious misfortune in income in the wake of the COVID-19 pandemic and said that the state governments are in prompt need of assets. Tamil Nadu is the second state after Kerala to dismiss the two choices proposed by the Center for Goods and Service Tax pay.