New Delhi: Finance Minister Nirmala Sitharaman has assured on Thursday the states that it will be paid compensation for loss of revenue from implementation of GST since August. However the Minister did not say by when the dues will be cleared.
During the debate in the Rajya Sabha on the Bill seeking Parliamentary nod for additional or supplementary spending in the current fiscal year, the Congress, the Left and the TMC raised the issue of non-payment of the GST compensation and sought to know when it will be paid.
The Finance Minister said the Centre was committed to discharging its obligation and asserted that “no one should have any doubt”. She said that all states including non-BJP ruled states have not been paid compensation since August.
She said the compensation is paid to the states out of cess levied on five products. The compensation is paid keeping 2015-16 revenues of the states as the base and guaranteeing 14 per cent addition on top of it every year.
After her reply, Rajya Sabha approved additional spending of over Rs 21,000 crore by voice vote.