Telangana Says it Lost Rs 8,000 Crore Income in 4 Months; Demands Full GST Compensation by Centre

It was “loud and clear” that as per the GST Act, the Centre will compensate if the states tax revenue growth was less than 14 per cent, Rao said, adding it did not mention anything about COVID-19 or natural disasters. A resolution was passed in the GST Council when Arun Jaitley was the finance minister, Rao said.

Telangana, during the past four months, has lost 34 percent of its income. The state has lost approximately Rs 8,000 crore during the past four months, he added. He said Chief Minister K Chandrashekhar Rao has written to Finance minister Nirmala Sitharaman on the issue.

Telangana would have additionally earned Rs 25,000 crore had it not joined the GST regime as it accepted the new tax regime in the interest of the nation, he said. The Centre has suggested states could borrow either via special window it will facilitate through the RBI or raise debt from the market to make up for the Rs 2.35 lakh crore shortfall in GST revenues expected in the ongoing fiscal.