FM: GST compensation to states late because...

Mon, 13 February 2023
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Union Finance Minister Nirmala Sitharaman on Monday said GST compensation to some states is delayed due to non-availability of AG's authenticated certificate, and that Kerala has not sent even a single such certificate since 2017-18. 

 Replying to a supplementary question, she also said that Rs 86,912 crore has been released for the Goods and Services Tax (GST) compensation payable to all states up to May 31, 2022. 

 She said as per law, GST Council decides to whom the GST compensation is to be released, not by the central government. AG's certification is (mandatory) by law between the Centre, states and the AG (accountant general), and it is an agreed process. So, unless the authentication is given by the AG.. she said. 

 The finance minister said if there is any delay of getting the AG's authentication, it is a matter between the AG and the state government concerned, and they have to sort it out. If between them there is a problem, the authentication certificate gets delayed in reaching the central government, she said. 

Sitharaman underlined that to get GST compensation, state governments have to do a lot more. 

"The state governments have to, pardon me using the word, be efficient to sort it out things with the AG. But without AG certificate, beyond a certain limits, it is very difficult for me to go," she said.

 Referring to Kerala, the minister said post GST induction, the southern state has not sent AG certificate for GST compensation for 2017-18, 2018-19, 2019-20, 2020-21. She said Kerala has not sent the AG certificate even for one year for getting compensation dues. Despite that, Sitharaman said, the Centre has been accused of not releasing the funds on time. -- PTI