New Delhi, Nov 21 (KNN) Opposition ruled states of Rajasthan, Kerala, Delhi, Punjab and West Bengal have urged the Centre to speed up and immediately release the guaranteed compensation for their Goods and Services Tax (GST) revenue loss for August and September.

Reportedly, finance ministers from these five states on Wednesday said that they were facing financial pressures because of the delay in compensation payment, the first since GST’s roll-out in July 2017.

Speaking to the reporters, Punjab Finance Minister Manpreet Singh Badal said the central government owes his state Rs 4,100 crore in Rs 2,100 crore of compensation for the two months and past arrears.

West Bengal Finance Minister Amit Mitra said, "We thought we will make appeal to Union Finance Minister saying that she must personally look into this and not violate the constitutional provisions as passed by parliament of India."

As per the constitution, states are guaranteed that any revenue shortfall from an agreed benchmark will be made good by the Centre for the first five years of GST, which end in 2022. States are now under the impression that the recent economic slowdown and the corporate tax rate cut announced in September have together have lessen central government’s finances and that this is now getting reflected in the delayed compensation payments.

Reacting over the same issue, Kerala Finance Minister Thomas Isaac said the state is supposed to get around Rs 1,600 crore in GST compensation adding that "this is a Centre-engineered crisis."

“If there is such a shortfall, salary payments will get affected. This is happening with all states," said Sisodia, Delhi Deputy Chief Minister.

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