Chennai: Tamil Nadu Chief Minister M K Stalin today urged Prime Minister Narendra Modi to levey zero GST on covid vaccines, ensure quick disbursal of pending GST compensation, rice subsidy, sanction ad-hoc grants-in-aid and hike the State’s borrowing limits from three per cent of SGDP to four per cent in view of the COVID pandemic.
In a letter to Mr Modi, he urged him to reduce the GST on Covid-19 vaccines and other related medicines procured by state governments to “zero” for a certain period after holding consultations with GST Council since the state government itself was procuring them.
He said the Centre should fix the GST at zero rate for these items. Mr Stalin put forth three demands to Mr Modi to offset the revenue loss in view of state’s economy impacted by the COVID pandemic.
Apart from releasing the pending GST compensation dues, Mr Stalin also urged Mr Modi to immediately release the rice subsidy due to the State Civil Supplies Corporation.
He also sought adhoc grants-in-aid as the Centre had not shared with the States, the revenue it had earned due to enhanced tax on petrol and diesel.
With a view to mobilising funds to meet the additional expenditure during this pandemic, he also urged Mr Modi to allow the States to increase the borrowings from three to four per cent.