Rajasthan Chief Minister Ashok Gehlot has demanded the Central Government to extend the period of GST compensation period from June 2022 to June 2027.

In a letter written to the Union Finance Ministry yesterday, Gehlot said that there had been a very negative impact on the revenue due to the strict lockdown in the State during the corona period.

While implementing GST, it was said that there will be stability in the revenue in 5 years and the State will get a definite growth rate in the revenue, he reminded. 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 corona pandemic, he added.

“No state is able to face this tough economic crisis alone. Therefore, it is necessary to increase the period of GST compensation given to the states by 5 years”, he said.

Gehlot said that the state has raised the matter many times at the level of GST Council and the Government of India to give the arrears of GST compensation of Rs 4822.63 crore from 2017-18 to May 2022-23, but this amount has not been received till now.

There is also a demand from all the states that the outstanding amount should be released at the earliest and in future instead of giving it as a loan, it should be given in form of a grant to the states, CM maintained.

CM also urged to make the tax rates of GST compatible so that better compliance can be ensured. He said that taxation on the domestic items used by farmers, disabled and the middle class should be rationalised and any change should be made only after detailed consultation with the stakeholders.

Gehlot said that the GST Council took decisions in regard to stopping the refund available on certain items such as edible oils due to Inverted Duty Structure, increase in tax rates and levying tax on non-taxable items, the implementation of these decisions should be postponed for at least one year.

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