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States to move Supreme Court If Centre Doesn’t Pay GST Dues

  1. Non BJP states like Kerala, West Bengal, Punjab, Delhi, Chhattisgarh, Madhya pradesh, Rajasthan, Union territory of puducherry are considering legal action.
  2. States demand immediate payment of their dues.
  3. Representatives of these states are requesting to clear pending compensation cess, since August 2019.
  4. States get average cess of approximately ₹7,500 crore per month i.e. ₹30,000 crore is pending.
  5. Earlier, last year, centre has collected compensation cess of approximately ₹95,000 crore.
  6. Before going for legal action, these state representatives will consider all the other possible actions.
  7. GST Council is aware of this situation and has accepted that compensation demands are rising and it is unlikely to meet these expectations.
  8. GST Council has formed a committee, with officers from state as well as centre.
  9. This committee will works on increasing GST revenue of government.
Author: Niranjan Reddy

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