Lok Sabha Question No. 159 (STARRED), answered on 2016-11-25
Subject: CST Compensation
Ministry: FINANCE
Asked by: Pratyusha Rajeshwari Singh, DEVAJIBHAI GOVINDBHAI FATEPARA

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA

## .  STARRED QUESTION NO. *159

## TOBEANSWERED ON FRIDAY\_THE NOVEMBER,2016 25th

## CST Compensation

4 Agrahayana, 1938 (SAKA)

## *159:SHRIMATI PRATYUSHA RAJESHWARI SINGH: :SHRI DEVAJIBHAI G. FATEPARA:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Central Sales Tax (CST) is likely to be phased out in States/UTs to the implementation of Goods and Services Tax (GST), if so, the details thereof prior
- and the reason therefor; if the details thereof; and SO,
- (b) the CST compensation paid/pending StatelUT-wise
- the last three years and the current year; including Odisha; during
- (c) whether   there is any  mismatch between   assessment and actual  accrual of CST compensation and if the details thereof; and SO,
- paid
- (d) the time by which the pending dues are likely to be

## ANSWER

## FINANCE MINISTER

(SHRI ARUN JAITLEY)

- (a): Central Sales Tax levied on all   goods; except for alcoholic for   human consumption,  petroleum   crude, high   speed   diesel, aviation turbine fuel, motor   spirit (commonly known as petrol); and natural gas, would be subsumed in Goods and Service liquor
- Tax (GST) on the rollout of GST in the Country.
- (b) to (d): A statement is laid on the Table of the House.

****

## STATEMENI REFERRED IQ IN REPLY TQLOK SABHA STARRED QUESTIONNO159

(b) to (d): The Empowered Committee of the State Finance Ministers had recommended that States be 100% CST compensation for year 2010-11\_ 75% CST compensation for 2011-12 and 50% CST compensation for 2012-13 to the Statesl UTs to be worked out as per CST  compensation  guidelines dated Cabinet in its meeting held on 17.03.2015 had approved the payment of CST compensation as per above recommendation of EC Accordingly, Central Government (Department of Revenue) has made the following release to the States/UTs in the last three years: paid

| CST compensation due for the FY   | To be released or released in the year:   | Admissible Amount (in Rs. Crores)   | Amount Released (in Rs. Crores)                 | Balance Amount to be released as on November, 2016   |
|-----------------------------------|-------------------------------------------|-------------------------------------|-------------------------------------------------|------------------------------------------------------|
| 2010-11                           | 2010-11 & 2011-12                         | 17,118.02                           | 6,934                                           | NIL                                                  |
| 2010-11 (Balance                  | 2014-15                                   | 17,118.02                           | 10,724.08                                       | NIL                                                  |
| 2011-12                           | 2015-16                                   | 16,315.25                           | 16315.25                                        | NIL                                                  |
| 2012-13                           | 2016-17                                   | 11,709.4                            | 5854.73 st (1 instalment released in July 2016) | 5454.69 instalment to be released in March 2017 (2nd |

The proposals for compensation received from States are calculated in light of Guidelines dated 22.08.2008 and compensation released accordingly. There is no mismatch between compensation calculated as per 22.08.2008 guidelines and compensation released to States: State wise details of balancel released CST compensation for year 2010-11, 2011-12 and

## DETAILS OF CST COMPENSATION TO THE STATES FOR THE YEAR 2010-11 (Rs. In crore)

| Sno.   | 'Name of State |   | CST compensati on Claimed   | Admissible CST compensation) as per guideline dated 22.08.08   | CST tion released in FY 2010-11   | CST compensa] compensation |compensation amount as per Cabinet |11 approval in FY 2014-15 paid   | Total CST paid for 2010-   |
|--------|-------------------------|-----------------------------|----------------------------------------------------------------|-----------------------------------|------------------------------------------------------------------------------------------------------------|----------------------------|
| (1)    | (2)                     | (3)                         | (4)                                                            | (5)                               | (6)                                                                                                        | (Z) = (5) + (6)            |
| 1      | Andhra Pradesh          | 2981.45                     | 2756.69                                                        | 1667.09                           | 635.45                                                                                                     | 2302.54                    |
| 2      | Telangana               |                             |                                                                |                                   | 454.15                                                                                                     | 454.15                     |
| 2      | Assam                   | 270.35                      | 210.51                                                         | 34.99                             | 175.51                                                                                                     | 210.51                     |
| 3      | Chhatisgarh             | 933.45                      | 848.86                                                         | 634.02                            | 214.84                                                                                                     | 848.861                    |
| 4      | Daman & Diu             | 73                          |                                                                | 0                                 |                                                                                                            |                            |
| 5      | Delhi                   | 2069.07                     | 1882.83                                                        | 1075.85                           | 806.98                                                                                                     | 1882.83                    |
| 6      | Goa                     | 52.87                       | 61.59                                                          | 0                                 | 61.59                                                                                                      | 61.59                      |
| 7      | Gujarat                 | 1428.25                     | 1154.95                                                        | 0                                 | 1154.95                                                                                                    | 1154.95                    |
| 8      | Haryana                 | 2249.63                     | 2355.01                                                        | 1136.16                           | 1218.85                                                                                                    | 2355.01                    |
| 9      | Jharkhand               | 492.99                      | 478.93                                                         | 335.88                            | 143.05                                                                                                     | 478.93                     |
| 10     | Karnataka               | 1575.16                     | 1575.16                                                        | 609.36                            | 965.8                                                                                                      | 1575.16                    |
| 11     | Madhya Pradesh_         | 189.52                      | 113.59                                                         |                                   | 113.59                                                                                                     |                            |
| 12     | Maharashtra             | 319.61                      |                                                                |                                   | 0                                                                                                          |                            |
| 13     | Nagaland                | 3.99                        | 1.61                                                           |                                   | 1.61                                                                                                       | 1.61                       |
| 14     | Odisha                  | 664.39                      | 579.67                                                         | 256.17                            | 323.5                                                                                                      | 579.67                     |
| 15     | Punjab                  | 281.96                      | 259.51                                                         | 0                                 | 259.52                                                                                                     | 259.51                     |
| 16     | Pudducherry             | 161.99                      | 168.57                                                         | 146.19                            | 22.38                                                                                                      | 168.57                     |
| 17     | Rajasthan               | 664.87                      | 626.68                                                         | 82.47                             | 544.21                                                                                                     | 626.68                     |
| 18     | Tamilnadu               | 2309.24                     | 2059.32                                                        | 58.92                             | 2000.4                                                                                                     | 2059.32                    |
| 19     | Uttarakhand             | 296.30                      | 278.22                                                         | 135.40                            | 142.82                                                                                                     | 278.22                     |
| 20     | Uttar Pradesh           | 1801.64                     | 847.76                                                         |                                   | 847.76                                                                                                     | 847.761                    |
| 21     | West Bengal             | 860.36                      | 858.56                                                         |                                   | 637.12                                                                                                     | 858.561                    |
|        | TOTAL                   | 19680.09                    | 17118.02                                                       | 6393.94                           | 10724.08                                                                                                   | 17118.02                   |

Note: No CST compensation is pending for the year 2010-11

ANNEXURE II

## DETAILS OF CST COMPENSATION To THE STATES FOR THE YEAR 2011-12 (Rs. In crore)

| Sno.   | Name of State   | CST compensation Claimed   | Admissible CST compensation |compensation/on paid for as per guideline dated 22.08.08   | Admissible CST amount restricted to 75% of guideline dated 22.08.2008(as per Cabinet approval dated   | Total CST compensati 2015-16   |
|--------|-----------------|----------------------------|----------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|--------------------------------|
| (1)    | (2)             | (3)                        | (4)                                                                                          | 17.03.15) (5)                                                                                         | (6)                            |
| 1      | Andhra Pradesh  | 3212.55                    | 1713.96                                                                                      | 1285.47                                                                                               | 1285.47                        |
| 2      | Telangana       |                            | 1224.93                                                                                      | 918.70                                                                                                | 918.70                         |
| 2      | Assam           | 379.46                     | 306.60                                                                                       | 229.95                                                                                                | 229.95                         |
| 3      | Chhatisgarh     | 915.04                     | 812.05                                                                                       | 609.04                                                                                                | 609.04                         |
| 4      | Daman & Diu     |                            | 0                                                                                            |                                                                                                       |                                |
| 5      | Delhi           | 2492.92                    | 2354.65                                                                                      | 1765.99                                                                                               | 1765.99                        |
| 6      | Goa             | 101.54                     | 91.13                                                                                        | 68.35                                                                                                 | 68.35                          |
| 7      | Gujarat         | 1565.86                    | 1232.79                                                                                      | 924.59                                                                                                | 924.59                         |
| 8      | Haryana         | 3009.52                    | 3191.55                                                                                      | 2393.66                                                                                               | 2393.66                        |
| 9      | Jharkhand       | 683. 77                    | 679.68                                                                                       | 509.76                                                                                                | 509.76                         |
| 10     | Karnataka       | 2106.57                    | 2105.69                                                                                      | 1579.27                                                                                               | 1579.27                        |
| 11     | Iadhya Prades   | 131.32                     | 38.86                                                                                        | 29.14                                                                                                 | 29.14                          |
| 12     | Maharashtra     | 0                          | 0                                                                                            | 0                                                                                                     |                                |
|        | Nagaland        | 2.09                       | 0                                                                                            |                                                                                                       |                                |
| 14     | Odisha          | 869.58                     | 766.43                                                                                       | 574.82                                                                                                | 574.82                         |
| 15     | Punjab          | 381.91                     | 344.06                                                                                       | 258.04                                                                                                | 258.04                         |
| 16     | Pudducherry     | 228.31                     | 238.22                                                                                       | 178.66                                                                                                | 178.66                         |
| 17     | Rajasthan       | 845.60                     | 762.17                                                                                       | 571.63                                                                                                | 571.63                         |
| 18     | Tamilnadu       | 3288.98                    | 2984.47                                                                                      | 2238.35                                                                                               | 2238.35                        |
| 19     | Uttarakhand     | 668.86                     | 642.14                                                                                       | 481.60                                                                                                | 481.60                         |
| 20     | Uttar Pradeshi  | 1392.09                    | 1229.59                                                                                      | 922.20                                                                                                | 922.20                         |
| 21     | West Bengal     | 786.68                     | 1034.71                                                                                      | 776.03                                                                                                | 776.03                         |
|        | TOTAL           | 23062.65                   | 21753.68                                                                                     | 16315.25                                                                                              | 16315.25                       |

Note: No CST compensation is pending for the year 2011-12

| SI.N, States   | Admissible CST compensation claim as per guidelines (50% of the admissible amount) (Rs. Crores)   | Amount released in the first installment (50% of the amont payable) Crores)   | Amount to be released in the Second installment (50% of the amont payable) (Rs. Crores)   |
|----------------|---------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------|
| (2)            |                                                                                                   |                                                                               | (5                                                                                        |
|                |                                                                                                   | 467.93                                                                        | 467.93                                                                                    |
| 2 Assam        | 132.3                                                                                             | 66.15                                                                         | 66.15                                                                                     |
| 3 Chhattisgarh | 408.65                                                                                            | 204.33                                                                        | 204.32                                                                                    |
| 4 Delhi        | 1381.06                                                                                           | 690.53                                                                        | 690.53                                                                                    |
| 5  Gujarat     | 296.06                                                                                            | 148.03                                                                        | 148.03                                                                                    |
| 6 Goa          | 47.4                                                                                              | 23.7                                                                          | 23.7                                                                                      |
| 7 Haryana      | 1688.1                                                                                            | 844.05                                                                        | 844.05                                                                                    |
| 8]Jharkhand    | 438.92                                                                                            | 219.46                                                                        | 219.46                                                                                    |
| 9 Karnataka    | 1237.49                                                                                           | 618.75                                                                        | 618.74                                                                                    |
| 10/M.P         | 17.39                                                                                             | 8.7                                                                           | 8                                                                                         |
| 11/Orissa      | 481.05                                                                                            | 240.53                                                                        |                                                                                           |
| 12 Pudducheryy | 155.95                                                                                            | 77.98                                                                         | 77.97                                                                                     |
| 13Punjab       | 273.24                                                                                            | 136.62                                                                        | 136.62                                                                                    |
| 14Rajasthan    | 436.5                                                                                             | 218.25                                                                        |                                                                                           |
|                | 1560.67                                                                                           | 780.34                                                                        | 218.25                                                                                    |
|                | 668.84                                                                                            | 334.42                                                                        | 780.34 334.42                                                                             |
|                | 630.44                                                                                            | 315.22                                                                        | 315.22                                                                                    |
| 18/U.P         | 560.84                                                                                            | 280.42                                                                        | 280.42                                                                                    |
| 19 Uttarakhand | 358.64                                                                                            |                                                                               |                                                                                           |
| TOTAL          |                                                                                                   | 179.32                                                                        | 179.32                                                                                    |
| (Rs. Crores)   | 11709.4                                                                                           | 5854.73                                                                       | 5854.69                                                                                   |