New Delhi: Indian Finance Secretary, Ajay Bhushan Pandey on Tuesday, said in the meeting of Parliamentary Committee on Finance that the government is unable to pay the Goods and Services Tax (GST) share of states according to the present revenue sharing formula.
The meeting was headed by Jayant Sinha the Member of Parliament (MP) from Bharatiya Janata Party (BJP).
The Finance Ministry on Monday declared that the Centre has also released the GST compensation of the financial year 2019-2020. The amount of the final instalment is said to be ₹13,806 crore.
It is said that the GST Council was to be held in the month of July to try and apply the methods and work upon the compensation to the states but the meeting is still not held yet.
According to the two committee members who attended the meeting said that Pandey’s comments were in the response upon the question of the shortage of revenue due to coronavirus pandemic.
An official said, “Pandey pointed out the provisions in GST Act that needs reworking of the formula for the payment of the compensation to the State government if the revenue system drops below a certain threshold”.
According to sources, Congress MP Manish Tewari said that the budget which was passed by Parliament might not have any relevance as it was based upon certain belief about the collection of revenue.
The Chairperson of the Committee, Jayanta Sinha also said that the questions which were asked by the members were political and the officials of finance ministry aren’t supposed to answer to that.
Praful Patel, an Indian politician and businessman has also reacted to this statement and said that if the Standing Committee of Finance cannot answer a basic question related to the economy, then it will be better to disband the panel.