Thiruvananthapuram: Kerala will get only Rs 5,700 crore from the Rs 1.10 lakh crore that the Centre will borrow to pay states to offset the loss caused by the non-payment of GST compensation due to poor tax collection. The amount will be received in stages. Kerala is hoping that the first tranche will be released on Monday.
Kerala wants to get at least Rs 12,000 crore in total as GST compensation till January. The Centre should be ready to borrow more to pay the remaining amount, the state has said.
Kerala had thought of approaching the Supreme Court to get the GST compensation amount, but the state has decided against it for the time being. Instead, the chief minister plans to write to the Centre again mentioning the state’s stand and how much it thinks it is owed.
The Centre will have to borrow and distribute Rs 1.70 lakh crore to states to make good the loss caused by non-payment of GST compensation. But the Centre has decided to borrow only Rs 1.10 lakh crore.
