Union Finance Minister Nirmala Sitharaman speaks in the Lok Sabha during the Budget Session of Parliament in New Delhi on February 13, 2023. Photo Credit: PTI
Union Finance Minister Nirmala Sitharaman said on 13 February Goods and Services Tax (GST) compensation to certain statesS The delay is due to non-availability of the AG’s attestation certificate, and Kerala has not sent a single such certificate since 2017-18.
Answering a supplementary question, he also said that Rs 86,912 crore has been released towards GST compensation payable to all states till May 31, 2022. He said that as per law, the GST Council decides to whom the GST compensation is to be released. Not by the Central Government.
“AG’s certification is [mandatory] By law between the Centre, States and AGs [accountant general], and it is an agreed process. So, till the certification is given by AG. He said.
The Finance Minister said that if there is any delay in getting the AG’s certification, it is a matter between the AG and the concerned state government and they will have to sort it out.
“If there is any problem between them, there is a delay in the authentication certificate reaching the central government,” he added.
Ms. Sitharaman underlined that state governments would have to do much more to get GST compensation.
Read also: States have only half month’s GST compensation dues for last month of GST compensation regime: FM
“State governments, pardon me for using the word, have to be efficient with the AG to sort things out. But without an AG certificate, beyond a certain limit, it is very difficult for me to go,” he said. Referring to Kerala, the minister said that after the implementation of GST, the southern state has not sent the AG certificate for GST compensation for 2017-18, 2018-19, 2019-20, 2020-21. He said that Kerala has not sent the AG certificate even for a year to get the outstanding compensation.
Despite that, Ms Sitharaman said, the Center has been accused of not releasing funds on time.
He urged Kerala MP NK Premachandran (who asked the supplementary question) to sit with the state government and request him to send the AG certificate at once.
After receiving them, within a reasonable time, Ms. Sitharaman promised that she would get it done.
“You haven’t sent [the AG certificate] Even for one year and you keep accusing us that we are not giving you money on time. On the contrary, according to the report of the Finance Commission, in the matter of tax devolution, all the states have been given two installments instead of one. Kerala also benefited from this.
The Union Minister said that AG’s certificate for 2017-18 in respect of Tamil Nadu has been received and the amount has been released.
The AG’s certified figure for 2020-21 for Tamil Nadu is around Rs 4,223 crore, even though there are some disputes, has been processed, and will be cleared, he said.
“But otherwise, by May 2022 the aggregate of all states for which payments are due at the beginning of June has been approved every amount that is available in public funds. The total amount disbursed is ₹86,912 crore which was released till May 31, 2022,” she said.