Extend GST compensation by 5 years: States to FM – Times of India

NEW DELHI: Several states on Thursday demanded that the GST compensation be continued for five more years due to impact of Covid, which stretched their finances and also pressed for raising the share of the Union government in centrally sponsored schemes at a pre-Budget consultation with finance minister Nirmala Sitharaman.
West Bengal, Kerala, Delhi, Chhattisgarh were at the forefront, demanding that the compensation cess be extended by another five years up to 2027. Some states like West Bengal said first it should be extended by at least three years and based on the assessment by another two years to help states overcome the pandemic impact.
Rajasthan education minister Subhash Garg said the Centre should consider the demand to extend the compensation cess window till 2026-27 as it was a valid demand. “Our most significant demand is that the Centre’s share in centrally sponsored schemes has gradually reduced and state’s share has increased. Earlier share would be 90-10 and now it is 50-50 or 60-40, our request is that it should go back to 90-10,” said Garg.
Some states also demanded that pending share of central taxes be devolved to the states and it should be done in the Budget.