
The Finance Ministry said that temporary retention of GST compensation in CFI pending reconciliation cannot be termed as diversion of GST Cess Fund.
The government collected ₹62,611 crores and released full compensation dues of ₹41,146 crores to the states and union territories in FY 2017-18, while it collected ₹95,081 crores out of which ₹69,275 crores were full compensation dues to the states for FY 2018-19. The remaining ₹47,271 crores were used to compensate for the FY 2019-20 due to the shortfall in GST cess collections. However, the Ministry of Finance stated that such temporary retention could not be treated as a diversion whatsoever.
Copied!