Non-payment of GST dues: Oppn call breach of trust, FM says following formula

New Delhi: Finance Minister Nirmala Sitharaman defended the opposition's allegation that the Centre has not been releasing the GST funds to the states run by non-BJP, saying the distribution of GST funds is made on a prescribed formula and there is no room for the opposition to politicise the matter.

The Minister was responding to MPs from Tamil Nadu and Maharashtra who raised the non-payment of GST funds in the Rajya Sabha.

Sitharaman said that since the formation of the GST council, it has been following a prescribed format for distributions that has been derived in the council, which is constituted with Finance Ministers from all states.

Besides the opposition MPs, the BJP MP Y S Chowdary from Andhra Pradesh also raised the delay in releasing the GST compensation, pointing out the higher return of the GST revenue during 2020-21 and 2021-22. Chowdary said there is a due of Rs 1,524 crore of GST compensation payable to Andhra alone.

Citing the crisis through which his state has been going due to the non-payment of Rs 20,287 crore under 38 heads, including GST compensation of Rs 9,842 crore, Tamil Nadu MP and DMK leader P Wilson called the non-payment of the GST dues breach of trust from the Centre's side.