Ajit Pawar to government: Extend GST compensation to states

States like Maharashtra will find the going tough if the Centre refuses their request to extend the GST compensation being allotted to them, beyond June 30. Maharashtra, along with several other states, has been seeking that the GST compensation be extended for another two years failing which Maharashtra may have to raise taxes to generate revenue.

Deputy chief minister Ajit Pawar said on Wednesday that the issue of GST compensation and the impact on the state's finances if the GST compensation is extended beyond this year would be discussed at the weekly cabinet meeting this week.

"We, along with several other states, have written to the Centre on extending the GST compensation by another two years. We are asking this as, in the last two years, states like us have suffered severely due to the pandemic. If the Centre does not accede, then the state would have to find alternative ways to raise revenue," Ajit Pawar said.


Pawar said they will see how the state would benefit under the upcoming Union budget.