Ajit Pawar requests that revenue protection for states be extended until June 30, 2022 with a 14 percent annual increase

Maharashtra's Deputy Chief Minister Ajit Pawar, who is in charge of the planning and finance departments, has sent a new request to Finance Minister Nirmala Sitharaman, asking her to maintain the state's income growth rate of 14% each year. Pawar, who was unable to attend the 46th GST Council meeting, claimed in his letter to Sitharaman that this is important because the Centre has not extended revenue protection to states past June 30, 2022.

He claimed that the COVID-19 scenario would prevent the economy from performing as expected. Furthermore, the state's finances will suffer if tax protection is not extended. "As a result, Maharashtra begs that compensation be extended under the GST Compensation Act for a period of five years beyond June 30, 2022, and that the states' revenue be protected at a 14 percent yearly rise," he added.

In the meantime, Pawar had asked Sitharaman to delay the increase in GST rates on textile-related products from 5% to 12%, which was slated to take effect on January 1, 2022. The GST Council decided to postpone an increase in the GST rate on textile goods at its meeting. According to Sitharaman, the topic has been sent to a rate rationalisation committee, which will assess textiles and submit a report by February.

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