West Bengal demands additional GST compensation of Rs 4,911 crores, letter sent to FM

After the 44th Goods and Services Tax (GST) meeting witnessed a remarkable cut down in COVID-related items, now West Bengal Finance Minister Amit Mitra has demanded additional compensation of Rs 4,911 crores. Mitra, on Monday, told reporters that he had also written a letter to Union Finance Minister Nirmala Sitharaman regarding the same however no response was received, he claimed. 

In April, the Finance Minister of West Bengal had also written a letter with a request to release the entire sum of Revenue Deficit Grant provided by the 15th Finance Commission to the state of Rs 5,031 crores in three installments. Accordingly, the Bengal government urged Rs 1,671 crores, for each of the three months of April, May and June, respectively. As per the state's finance minister, the request was made due to the prevailing situation of COVID-19 and its expenditure. 

Mitra further accused Government of releasing only Rs 417 crores for the month of April. 

"But we are dismayed that the Centre has released only an amount of Rs 417 crores for the month of April, in a routine manner without taking into cognizance the unprecedented COVID-19 crisis," added Amit Mitra.

He also pointed out the proposal sent by the Chief Minister to the Prime Minister of raising the FRBM limit from 3 per cent to 5 per cent for this fiscal year, 2020-21.

Amit Mitra-Anurag Thakur blame game in 44th GST Council meeting

West Bengal Finance Minister had alleged union ministers of not letting him speak during the recent GST meeting however, MoS  Anurag Thakur had later clarified that Amit Mitra did not speak up. Thakur lashed out at Dr. Mitra in a series of tweets and provided details of the meeting defending Finance Minister Nirmala Sitharaman. Dr. Mitra, in a letter, called out Centre for its COVID management and claimed that his voice in the meeting was 'muzzled'.

Meanwhile, the veteran economist has demanded a probe into how and who had "muted" his microphone when the meeting was in progress, reported PTI. 

"Authoritarianism and majoritarianism have taken over the GST Council... It's most unfortunate," Amit Mitra cried.

44th GST Council Meeting

In the June 12 meeting, the union finance ministry decided to give a major relief to citizens, with the decision of exempting GST for treating COVID-19 and rate on any other drug recommended by the health ministry and for COVID-19 treatment from 12% to 5%. The meeting was attended by the minister of state for finance Anurag Thakur, besides finance ministers of states, Union territories and senior officers from Union government and states. 

(Inputs from ANI)