In a recent development in the Gujarat State Assembly, Finance Minister Kanu Desai disclosed that the state has been pursuing over ₹1,500 crore in Goods and Services Tax (GST) returns from the central government. This revelation comes amidst ongoing discussions and negotiations between the state's finance department and the Union Finance Ministry regarding the outstanding dues.
As per Desai's response to an inquiry raised in the state assembly, as of December 31, 2022, Gujarat's GST return dues amounted to ₹9,136.26 crore. However, following a thorough examination by the accountant general and the adjustment of figures based on the state's verified income, the revised amount escalated to ₹11,557.94 crore.
Despite the state's persistent pursuit, the central government disbursed only a fraction of the due amount. In February 2023, Gujarat received ₹864.62 crore, followed by another payment of ₹9,020.97 crore in July 2023. This leaves the current outstanding dues at ₹1,672.35 crore, which the state is actively advocating to be reimbursed by the central authorities.
Minister Desai emphasized that the finance ministry has duly notified the timely audit certificate of income by the accountant general in accordance with the provisions outlined in Section 7 of the Goods and Services Tax (Compensation to States) Act 2015. This underscores the state's commitment to transparent financial management and adherence to statutory regulations.
The delay in the reimbursement of GST returns poses significant challenges for Gujarat's fiscal planning and resource allocation. The pending funds are crucial for financing various developmental projects and addressing the state's financial obligations.
Gujarat's persistent efforts to secure its rightful GST returns reflect the broader concerns of states across India regarding timely and adequate disbursement of funds by the central government. The issue underscores the importance of effective coordination and communication between state and central authorities to ensure smooth fiscal operations and equitable distribution of resources.
As discussions continue between Gujarat and the central government, stakeholders are eagerly awaiting a resolution that will alleviate the financial strain on the state and facilitate its ongoing development initiatives.
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