Tamil Nadu Chief Minister M K Stalin on Thursday urged Prime Minister Narendra Modi to bring the Goods and Services Tax for COVID-19 vaccines and drugs to zero level.
Pending GST compensation and subsidy on rice should be released immediately and adhoc grants-in-aid must be provided as the Centre has not shared with states the revenue from additional levies on fuel, he said in a letter to Modi.
Also, Stalin wanted the borrowing limit increased by one more per cent from the current three per cent of Gross State Domestic Product.
State governments were procuring COVID-19 vaccines and drugs to treat the patients and the GST for such supplies should be made zero, he said.
At a time when the tax revenue of states have seen a steep decline on account of economic growth taking a hit in view of the pandemic, measures including release of GST compensation should be taken up by the Centre to help the state governments.
