Government May Not Pay Indian States GST Tax Compensation: ET

July 29, 2020, 3:21 AM UTC

India’s federal government told a parliamentary panel it may not be able to pay states GST compensation dues because of a drop in tax collections amid the Covid-19 outbreak, the Economic Times reported, citing people it didn’t identify.

  • Statement made by finance ministry officials to the parliament’s standing committee on finance on Tuesday: the report
  • GST collections down to 1.85 trillion rupees ($24.7 billion) in first three months of fiscal year from 3.14 trillion rupees a year earlier, it said
  • NOTE: Virus-Ravaged States in India Clamor for More Funds From Modi

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