Gujarat yet to get central sales tax compensation

The Centre has paid more than Rs2,400 crore to 10 states as compensation for loss of Central Sales Tax (CST) revenues for the year 2010-11. However, Gujarat is yet to receive even a single rupee as compensation.

The state government had sought CST compensation of Rs1,428 crore for 2010-11 from the Centre. The compensation was sought as per the formula finalised by the Empowered Committee of State Finance Ministers for calculating the revenue loss of the states.

Minister of state for finance, Saurabh Patel claimed that the Centre had already paid Rs2,411 crore to 10 states as CST compensation for 2010-11, but no compensation had been paid to the state as yet.

According to figures provided by Union finance ministry in Lok Sabha, it has paid Rs2,411 crore as compensation to 10 states as CST compensation for 2010-11.

The states that have been paid the compensation include Andhra Pradesh (Rs833 crore), Delhi (Rs422 crore), Haryana (Rs356 crore), Karnataka (Rs235 crore) and Chhattisgarh (Rs219 crore).
The other states that have been paid the CST compensation include Orissa (Rs118 crore), Jharkhand (Rs93 crore), Puducherry (Rs56 crore), Rajasthan (Rs48 crore) and West Bengal (Rs31 crore).

Patel alleged that non-payment of CST compensation to Gujarat was one more instance of injustice to the state by the Centre.
"We submitted the claim, duly certified by the Accountant General, long back, but we are yet to receive any compensation. However, a number of other states have already been paid the money," Patel told reporters.

He said that the state was not being paid the compensation under the pretext that its revenue growth was impressive. "This cannot be justified under any circumstances," he said.

The minister said that they have strongly represented the issue before the Centre, and it would be raised again during the upcoming meeting of the Empowered Committee of State finance ministers on Friday.