GST Fees: Center owes states more than official figures, Chidambaram says

The senior congressman wondered why the Treasury Department “embarrassed” PM Modi by releasing the information on the day he “admonished” states about the fuel tax.

The senior congressman wondered why the Treasury Department “embarrassed” PM Modi by releasing the information on the day he “admonished” states about the fuel tax.

Senior Congress leader P. Chidambaram dug up the center on Thursday April 28, 2022 about the 78,704 crore it owes states in GST compensation and said it would be interesting to know why the Treasury Department was “relocating Prime Minister Narendra.” ‘ Modi made by releasing the information on the day he intended to ‘admonish’ states.

The Treasury announced on April 27, 2022 that the Center had already released eight months of GST adjustment fees to States for the fiscal year ended March 2022 and ₹78,704 crore is outstanding due to an insufficient balance in the Ccess fund.

On the day the prime minister warned states to lower the VAT rate on petrol and diesel, the Treasury announced the center owed states 78,704 crore, Mr Chidambaram said.

“The amount owed is actually higher. If you add up the amounts that states owe them, the total can be larger. Only the Controller of Government Accounts (CGA) can confirm the correct amount,” the former Treasury Secretary said on Twitter.

“It will be interesting to learn why the MoF embarrassed the Prime Minister the day he admonished States!” he said.

Prime Minister Modi pointed to higher fuel prices in many opposition-ruled states on Wednesday, calling it an “injustice” to the people living there and calling on local governments to cut VAT in the “national interest” to benefit the common man come.

Mr Modi raised the issue of many states not complying with the center’s call to reduce value-added tax (VAT) on gasoline and diesel after his government cut excise taxes on them last November, urging them to do so to work in the spirit of cooperative federalism in this time of global crisis.

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