Centre releases Rs 455.6cr towards central sales tax

HYDERABAD: Telangana finance minister Etela Rajender on Thursday said that the Centre has released Rs 455.6 crore towards CST (central sales tax) compensation due to the state.

While the total dues amount to Rs 7,049 crore, Rajender said that the Centre had released Rs 455.6 crore as the first installment and the second installment was expected next year.

“The Centre has not paid CST dues since 2010. After our repeated reminders, it has now released the first installment. We are expecting the cheque on Friday,” the minister told reporters.

The Union government owes money towards compensation for revenue loss pertaining to phased out CST in the states after implementation of the new commercial tax regime of value added tax (VAT).

Rajender visited Delhi on Wednesday for a meeting of finance ministers from various states and met Union finance minister Arun Jaitley. He urged the Centre to impart special category status for Telangana and raise the FRBM (Fiscal Responsibility and Budget Management) limit from 3 to 4 per cent so that the state can raise Rs 18,000 crore through market borrowings.

Financial assistance for the water grid scheme and other centrally sponsored schemes were among the other demands of Telangana before the Centre.

Rajender said that while supporting the implementation of GST (Goods and Services Tax), Telangana urged the Centre to exempt paddy, petrol and diesel from the new tax regime.

The minister, who also holds the civil supplies portfolio, said that the state government was taking stringent steps to curb fuel adulteration and other irregularities at petrol pumps. Referring to rampant corruption in the public distribution system, he said that PDS dealers indulging in black marketing would be punished under the Preventive Detention Act. He observed that there were instances of some dealers diverting PDS rice, sugar and tur dal to open market and the culprits had been brought to book.

He also said that the food security cards would be issued from May first week.

Source: Times of India

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