Kerala CM writes to PM Modi conveying concern over GST compensation

Kerala Chief Minister’s Office :

  • Kerala Chief Minister Pinarayi Vijayan has written to Hon’ble Prime Minister to convey the concerns of the Govt of Kerala with regard to the hurdles in the payment of GST compensation to the States.
  • “It is felt that transferring the obligation of GST compensation to the States through their borrowing is not in accordance with the spirit of understanding reached between the Centre & the States during the discussions preceding the constitutional amendment for bringing in GST.”
  • CM requested the PM to intervene and advise the Finance Ministry not to go ahead with the plans of transferring the burden of GST compensation on the States and instead follow the letter and spirit of the Goods and Services Tax (Compensation to States) Act, 2017.

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