Cuts being made by the Centre are affecting development: Dhariwal

Jaipur: During the meeting of the GST Empowered Committee in Delhi on Thursday, Urban Development and Housing Minister Shanti Dhariwal raised the matter of cuts being made by the central government in the state’s part of GST, CST and various union govt-sponsored schemes. Dhariwal stated that a possible reduction of about Rs 11,826 cr grants have been done, which is affecting the development works in the state. The minister was representing Rajasthan on behalf of the CM in the meeting.

Dhariwal said that it has become necessary to reestablish the priorities of development works in the state, in view of a decrease in share amount and grant of taxes by the centre. Dhariwal also requested to issue the pending compensation of Rs 4,478 cr of CST, about Rs 4,172 cr of the share amount received from the central taxes in the current financial year and a possible reduction of about Rs 3,176 cr in the grant of various centrally sponsored schemes soon.

Dhariwal added that under the Central Sales Tax Act, 1956, compensation for a reduction in the tax rate on sales on C-form is paid by the Central Govt to the states. While requesting to release this amount soon, Dhariwal requested to make the tax rate on sale on C-form 4% again. Seeking amendment in the CST Act, the UDH Minister said that C-form should be applicable only for resale of goods so that no businessman can take benefit of it.