Taking strong exception to the decisions taken by GST council on the payment of dues and compensation to the states, Chief Minister K Chandrasekhar Rao on Tuesday dashed off a letter to Prime Minister Narendra Modi to address the concerns raised on the payment of GST dues to the states.

KCR’s letter comes in the wake of reducation of Goods and Services Tax (GST) compensation to be paid to States from Rs 3 lakh crore to Rs 1.65 lakh crore.

In the letter, KCR had pointed out that states are in the forefront of fighting Covid and reviving the state economies. Telangana, during the past four months, had lost 35 per cent of income, which is to the tune of Rs 8,000 crore, he pointed out in the letter.

KCR said that the centre has violated the provisions of GST compensation act by parking the surpluses in the compensation fund in its consolidated fund instead of parking them in the non lapsable compensation fund in the Public Account. He strongly opposed to the centre suggestion to the states to go for borrowings to meet the financial requirements.

Earlier, the Chief Minister wrote a letter to Union Finance Minister Nirmala Sitharaman expressing the State’s opposition to the Centre’s move.