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Temporary retention, not diversion: FinMin sources on CAG audit of GST cess

Time taken in reconciliation of compensation receipts can't be termed as diversion of GST cess fund when the dues to states were fully released by the central government, they said

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If a state's revenue grows slower than 14 per cent, it is supposed to be compensated by the Centre using the funds specifically collected as compensation cess.

Press Trust of India New Delhi

4 min read Last Updated : Sep 26 2020 | 8:17 PM IST

Finance ministry sources have countered CAG audit finding of central government wrongly retaining Rs 47,272 crore of GST compensation cess meant for states, saying temporary retention cannot be termed as diversion.

Days after the Comptroller and Auditor General (CAG) flagged that the Centre in first two years of the GST implementation wrongly retained GST compensation cess that was meant to be used specifically to compensate states for loss of revenue, ministry sources said compensation due for the year 2017-18 and 2018-19 was fully paid to states.

Time taken in reconciliation of compensation receipts can't be termed as diversion of GST cess fund

Topics : Finance Ministry Comptroller and Auditor General CAG GST cess Gross domestic product

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