GST dues were delayed as some states didn’t file papers: Nirmala Sitharaman

Replying to a question on the delay in paying the GST compensation by the Centre to states, Sitharaman said: “…for all the states, up to May 2022, for which the payment goes in early June, every amount has been cleared which was available in the public funds. The total amount that was given was Rs 86,912 crore that was released on May 31, 2022.”

Pointing out that the AG certification is an agreed process between the Centre and the states for getting the payments on time, the Minister, who was responding to a question raised by DMK MP from Tamil Nadu, A Raja, in the Lok Sabha, added: “So, through you, I will humbly submit to the House and also the member… that in the process of getting the AG certificate, state governments will have to be a lot more efficient. Pardon me for using the word ‘efficient’. You will have to get that thing sorted out at the earliest so that we can release the funds at the earliest.”

Regarding GST compensation to Tamil Nadu, Sitharaman said the AG certification was received for 2017-18 and the money released. “There is some disputed amount, as the hon. member himself is saying. AG certified figures (Rs 4,223 crore) for 2020-21 were received… it is in the process of being cleared,” she said.

Responding to a supplementary question raised by RSP member N K Premachandran, an MP from Kerala, the Finance Minister said the state has not sent the AG’s certified statements for the GST compensation for the years 2017-18, 2018-19, 2019-20, 2020-21, and 2021-22.

“…Have you sent me the AG’s certified account even for one year for getting your compensation dues? Then, it is accused that the Centre is not releasing the funds on time. The certified authorised statement has not reached even for one year,” the Finance Minister clarified.

Premachandran had pointed out that the state government had blamed the Centre for the delay in payment for imposing a cess of Rs 2 per litre on diesel and petrol.

“Almost all the states, especially my state of Kerala, are blaming the Union government that it is not properly disbursing the GST compensation, the revenue deficit grant, and that is the reason… Kerala is forced to impose a cess of Rs 2 per litre on diesel and petrol,” he said.

Sitharaman urged Premachandran, who belongs to the Opposition front in the CPI-M-ruled Kerala, to have a discussion with the state government and that the Centre would be able to clear the dues if the state sends all the statements. “You have not sent it for one year, and you keep blaming us that we are not giving you the money on time,” she said.