In light of the bad financial situation caused by the COVID-19 pandemic, Rajasthan Chief Minister Ashok Gehlot proposed on Friday that the Centre extend the period of GST compensation by five years, from June 2022 to June 2027.
He said that the state’s revenue has been severely impacted by the lockdown that was imposed during the pandemic.
According to Gehlot, when the GST was being implemented, it was stated that after five years the revenue would be stable and the state would see a certain growth rate.
“But till now, the GST revenue receipts have not stabilised as expected and the economic condition of the states has become critical due to the economic slowdown and the COVID-19 pandemic,” he said in a statement.
According to the chief minister, no state has been able to handle this economic crisis alone. Therefore, he stated, “it is necessary to extend the time frame for the states’ GST compensation by five years. Gehlot continued, “From 2017–18 to May 2022–23, Rajasthan’s GST compensation of Rs. 4,822.63 crore is outstanding.” The state has brought up this issue multiple times at the level of the GST Council, but the money has not yet been made available, he claimed.