New Delhi: The state government is facing a revenue shortfall of Rs800 crore at the end of the first month of the Goods and Services Tax (GST) rollout. This will be one of the concerns Finance Minister Manpreet Singh Badal will raise at tomorrow’s meeting of the GST Council here.

The state was expecting revenue of Rs1,650 crore, but received only Rs846 crore.

“Punjab’s cash flows have been severely hampered. While the Centre is sitting on a pile of money and earning interest on it, we have had to borrow money to pay salaries and other bills. All state governments are under severe cash strain. The Centre must compensate states as soon as possible,” Manpreet told the media here today.

He said the state would reiterate its demand for exempting langar items from the GST. “The tradition of langar at the Golden Temple goes back to 350 years. Neither the English nor Afghan and Turkish rulers implemented tax on langar. The problem is not with the payment of tax. That can be done. The problem is with the idea of taxing langar in Darbar Sahib. It’s a matter of faith.”

Karnataka Cabinet Minister Krishna Byre Gowda, also present at the press meet, raised the same issue of revenue shortfall on account of inability to pay tax on the GST Network.

“The GST Network collapsed several times, preventing the payment of tax and collection of revenue. There is often a difference between the data given by the RBI and the one given by the GST Network. The Centre has to resolve these matters,” Krishna said.

In the meeting, the Congress will raise the concerns of the textile sector, which is under stress after the GST rollout. “Import duties have been cut and local manufacturing has been taxed, making the market uncompetitive and unattractive for domestic garment makers. This should be corrected,” Manpreet said.

The Karnataka’s silk industry has been hit due to reduction in import duty on silk from 20 per cent to 10 per cent. “The age-old industry is under tremendous stress,” the Karnataka minister added.

end-of