Centre releases Rs 1,036 crore to Telangana

Hyderabad: Facing heat over delay in payment of GST compensation, the Central government on Monday released Rs 35,298 crore to States including Telangana State. The Centre owes about Rs 29,891 crore to the State including Rs 4,531 crore of GST dues including GST compensation during the current financial year.

Though the Union government paid Rs 1,036 crore to the State, GST dues amounting to Rs 3,495 crore are yet to be cleared. The Centre has not communicated when the pending amount will be released to the State.

Earlier this month, several State governments including Telangana upped the ante for immediate release of GST compensation fund. Union Finance Minister acknowledged the delay in payment of compensation on account of shortfall in GST collections.

Expecting the issue to be taken up by the States especially those ruled by the Opposition parties in the upcoming GST Council meeting on December 18, the Centre is said to have released compensation dues, partially.

Chief Minister K Chandrashekhar Rao and Finance Minister T Harish Rao had written to Sitharaman seeking immediate release of GST dues. The TRS MPs had also raised the issue in the winter session of Parliament and disrupted proceedings. They also held demonstrations in on Parliament premises.

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