GST compensation: Kerala to receive Rs 780 cr from centre after giving AG's certification

The issue was raised in the house by Shashi Tharoor MP who pointed out that Kerala is yet to receive Rs 4,486 crore as GST compensation for the year 2017-18. 

Union Finance Minister Nirmala Sitharaman I Photo: PTI

New Delhi: Union Finance Minister Nirmala Sitharaman on Monday said Goods and Services Tax (GST) claims of state governments will be cleared once she gets relevant papers along with a certificate from the state accountant general (AG).

“Kerala is expected to receive Rs 780.49 crore as GST compensation. The state finance minister visited me to hold talks in this regard,” Sitharaman said during the question hour in Lok Sabha.

MP Shashi Tharoor raised the issue in the house and pointed out that Kerala is yet to receive Rs 4,486 crore as GST compensation for the year 2017-18.

"Many state governments believe that their GST compensation is pending.The central government needs the necessary papers as the money belongs to the taxpayers. Hence, the compensation will be settled once the centre obtains the papers, Sitharaman said.

"The moment I receive the papers, the AG certification, even if there is a contention between the Centre and a state, it has to be sorted out. I cannot be sitting on somebody's money," she said.

She added that the central government is committed to pay all GST compensation to states and has been doing so continuously for the last five years.

The minister further said half of the compensation for June has already been cleared while the rest would be given once adequate cess is collected.

With PTI inputs

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