GST compensation due for all states, not just for some: FM Nirmala Sitharaman

Not only opposition-ruled states but other states also have not been paid GST compensation for the last four months since August this year.

Speaking in the Rajya Sabha, Finance Minister Nirmala Sitharaman admitted the delay but said that the Centre had released more than what it collected as cess in the current financial year 2019-20 till October-end.

"Till October 31 the Government of India has released Rs 9,783 crore more than the amount raised through cess," the Minister said.

She, however, said that government was committed to honour and give compensation to the states.

Replying to the members on the Appropriation (No. 3) Bill, 2019 for making supplementary expenditure, Sitharaman said that a total of Rs 55,467 crore had been collected as cess while Rs 65,250 crore was released to the states.

Several state finance ministers had earlier expressed concerns over delay in compensation delays for the months of August and September forcing them to resort to ways and means or even overdraft.

As many as nine states have complained of delay in GST compensation dues and appealed Centre to make timely payments as promised at the time of GST launch.