Tribune News Service
New Delhi, September 15
The Centre on Tuesday revealed that the GST compensation cess it had collected within the present monetary 12 months has already been partly utilised.
While stating that the GST compensation cess collected in present monetary 12 months is inadequate to launch to states the admissible GST compensation for the interval April to July, Minister of State for Finance Anurag Thakur mentioned in a written reply that a few of this cash has been “partly utilized” for compensating states for the earlier monetary 12 months.
The Centre caught to its stand that states must select one of many two choices for receiving GST compensation and revealed the whole opinion of the Attorney General of India on this regard, Thakur mentioned whereas replying to a spate of questions together with from Elamaram Kareem (CPI-M), V. Vijayasai Reddy and Kethi Reddy Suresh Reddy (each TRS).
In written replies, Thakur maintained that the long run plan of action to satisfy the GST compensation shortfall was mentioned by the GST Council on August 27 the place the states got two choices to satisfy their GST compensation shortfall for the present monetary 12 months from market borrowing.
Thakur mentioned 5 questions have been put to the AG. On the query that in case the stability within the GST Compensation Fund is just not sufficient to satisfy the compensation, the AG mentioned states are entitled to obtain the total quantity of compensation throughout the “transition period”.
But in case the stability within the Fund is inadequate, the AG mentioned there isn’t any specific provision within the Compensation Act for the Centre to bear the legal responsibility of constructing good the shortfall. While the AG agreed that the GST Council can advocate extension of interval for compensation, in reply to 2 questions he made it clear that the Centre could have the final phrase on any borrowing by the states.