State govt got fair GST share from Centre; MVA has not slashed VAT on fuel: BJP

devendra fadnavis

Opposition leader Devendra Fadnavis said, “It has become a fashion to accuse the Centre without ascertaining the facts. Whereas if we look as the funds allocated under GST to Maharashtra, they have remarkably increased in the past three years.”

The MVA government in Maharashtra took the reins in 2019 and the GST compensation allocated to the state was Rs 19,233 crore in 2019-20, Rs 40,398 crore in 2020-21 and Rs 13,782 crore in 2021-22. More funds will flow this year.

“The GST compensation is based on norms that the financial ministry works out state-wise. The charge that the Centre was ill-treating Maharashtra is ridiculous. The finance department has a mechanism to work out the compensation on specific parameters and not politics,” Fadnavis said.

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Prime Minister Narendra Modi had pulled up the Maharashtra government on Wednesday for not reducing Value Added Tax. After the Centre took the decision to cut excise duty, it had urged state governments to reduce VAT to bring down petrol and diesel prices.

Later, Thackeray had said, “The Centre owes Maharashtra Rs 26,500 crore dues,” adding, “The contribution of Maharashtra to the Centre is 38.3 per cent through direct taxes and 15 per cent through GST. In return it gets only 5.5 per cent of the total taxes it sends to the Centre.”

BJP vice president Madhav Bhandari said, “The Prime Minister expressed concern as several states did not heed the Centre’s appeal to reduce VAT despite excise duty being cut last November. Why should Maharashtra and West Bengal Chief Ministers overreact?”

“Under GST, the total amount to state expected was Rs 26,000 crore, of which the Centre has already allocated Rs 13,782 crore. The remaining Rs 13,627 crore has to be paid by July. Now, how can it be termed as arrears? When the deadline has not been crossed how can the state government accuse the Centre of withholding GST payment?” the BJP leader asked.

The VAT on diesel and petrol in Maharashtra is highest among states at Rs 32.15 per litre. It is followed by Andhra Pradesh at Rs 31.59 per litre, Rajasthan at Rs 29.10 per litre, Kerala at Rs 27.24 per litre, West Bengal at Rs 26.24 per litre, Uttarakhand at Rs 14.51 per litre, Uttar Pradesh at Rs 16.50 per litre, Gujarat at Rs 16.56 per litre, Himachal Pradesh at Rs 16.60 per litre and Assam at Rs 17.38 per litre.

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