Lok Sabha Question No. 3179 (UNSTARRED), answered on 2015-08-07
Subject: CST Compensation
Ministry: FINANCE
Asked by: PARBHUBHAI NAGARBHAI VASAVA, GEETHA KOTHAPALLI, DEVAJIBHAI GOVINDBHAI FATEPARA, RAJESHBHAI NARANBHAI CHUDASAMA

**GOVERNMENT OF INDIA**

**MINISTRY OF FINANCE**

**DEPARTMENT OF REVENUE**

**LOK SABHA**

**UNSTARRED QUESTION NO. 3179**

**TO BE ANSWERED ON FRIDAY, THE 7** **TH** **AUGUST,  2015**

**16 SHARVANA,1937 (SAKA)**

**CST Compensation**

**3179 :  SHRI PARBHUBHAI  NAGARBHAI VASAVA**

**:	SHRIMATI KOTHAPALLI  GEETHA**

**:	SHRI DEVAJIBHAI G. FATEPARA**

**:  SHRI RAJESHBHAI CHUDASAMA**

Will the Minister of **FINANCE** be pleased to state:

1. whether the Government has full  compensation amount to the States for loss of Central Sales Tax (CST) revenue;
2. if so, the amount claimed, compensation paid and amount outstanding during the last three years and the current year, State-wise; and
3. the time by which the outstanding compensation is likely to be fully released; and
4. whether the Government made adequate provisions for the CST compensation in the budget, if so, the details thereof and the funds allocated in the regard?

**ANSWER**

### 

### MINISTER OF STATE IN THE MINISTRY OF FINANCE

**(SHRI JAYANT SINHA)**

1. and (b) The Empowered Committee had recommended to pay 100% CST compensation for year 2010-11, 75% CST compensation for 2011-12 and 50% CST compensation for 2012-13. Union Cabinet in its meeting held on 17.3.2015 had approved payment of CST compensation to the States for the financial years 2010-11, 2011-12 and 2012-13 as per EC recommendation. Accordingly, Central Government (Department of Revenue) has released total Rs.17118.02 crore towards payment of CST compensation to the States/UT’s for the year 2010-11.  Details of the amount claimed admissible and paid  state-wise is as per Annexure-I & Annexure-II.

(c) CST compensation to the states/UT’s for year 2011-12 is proposed to be paid in two installments in Financial Year 2015-16 CST compensation for the states for 2012-13 will be paid in 2016-17.

(d) Provision of Rs.15028 crore has been made in BE 2015-16 for payment of CST compensation to the States/UT’s for the year 2011-12.

****

|                                                                                   |                   |                              |                                                                 |                                             | **ANNEXURE I**                                                                        |                                             |
|-----------------------------------------------------------------------------------|-------------------|------------------------------|-----------------------------------------------------------------|---------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------|
| **DETAILS OF CST COMPENSATION TO THE STATES FOR THE YEAR 2010-11 (Rs. In crore)** |                   |                              |                                                                 |                                             |                                                                                       |                                             |
| **S.no.**                                                                         | **Name of State** | **CST compensation Claimed** | **Admissible CST compensation as per guideline dated 22.08.08** | **CST compensation released in FY 2010-11** | **CST compensation amount paid as per Cabinet approval dated 17.03.15 in FY 2014-15** | **Total CST compensation paid for 2010-11** |
| 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                                                                                | 848.86                                      |
| 4                                                                                 | Daman & Diu       | 73                           | 0                                                               | 0                                           | 0                                                                                     | 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                                                          | 0                                           | 113.59                                                                                | 113.59                                      |
| 12                                                                                | Maharashtra       | 319.61                       | 0                                                               | 0                                           | 0                                                                                     | 0                                           |
| 13                                                                                | Nagaland          | 3.99                         | 1.61                                                            | 0                                           | 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                                                          | 0                                           | 847.76                                                                                | 847.76                                      |
| 21                                                                                | West Bengal       | 860.36                       | 858.56                                                          | 221.44                                      | 637.12                                                                                | 858.56                                      |
| **TOTAL**                                                                         |                   | **19680.09**                 | **17118.02**                                                    | **6393.94**                                 | **10724.08**                                                                          | **17118.02**                                |

|                                                                                   |                   |                |                              |                                                                 |                                                                                                                                |                                                      | **ANNEXURE II**                                       |                                             |
|-----------------------------------------------------------------------------------|-------------------|----------------|------------------------------|-----------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------|-------------------------------------------------------|---------------------------------------------|
| **DETAILS OF CST COMPENSATION TO THE STATES FOR THE YEAR 2011-12 (Rs. In crore)** |                   |                |                              |                                                                 |                                                                                                                                |                                                      |                                                       |                                             |
| **S.no.**                                                                         | **Name of State** |                | **CST compensation Claimed** | **Admissible CST compensation as per guideline dated 22.08.08** | **Admissible CST compensation amount restricted to 75% of guideline dated 22.08.2008(as per Cabinet approval dated 17.03.15)** | **Amount released in Ist installment in FY 2015-16** | **Amount released in IInd installment in FY 2015-16** | **Total CST compensation paid for 2015-16** |
| 1                                                                                 | Andhra Pradesh    | Andhra Pradesh | 3212.55                      | 1713.96                                                         | 1285.47                                                                                                                        | 642.74                                               | 642.73                                                | 1285.47                                     |
| 2                                                                                 | Telangana         | Telangana      |                              | 1224.93                                                         | 918.70                                                                                                                         | 469.35                                               | 469.35                                                | 918.70                                      |
| 2                                                                                 | Assam             | Assam          | 379.46                       | 306.60                                                          | 229.95                                                                                                                         | 114.98                                               | 114.97                                                | 229.95                                      |
| 3                                                                                 | Chhatisgarh       | Chhatisgarh    | 915.04                       | 812.05                                                          | 609.04                                                                                                                         | 304.52                                               | 304.52                                                | 609.04                                      |
| 4                                                                                 | Daman & Diu       | Daman & Diu    | 0                            | 0                                                               | 0                                                                                                                              | 0                                                    | 0                                                     | 0                                           |
| 5                                                                                 | Delhi             | Delhi          | 2492.92                      | 2354.65                                                         | 1765.99                                                                                                                        | 882.99                                               | 883.00                                                | 1765.99                                     |
| 6                                                                                 | Goa               | Goa            | 101.54                       | 91.13                                                           | 68.35                                                                                                                          | 34.17                                                | 34.18                                                 | 68.35                                       |
| 7                                                                                 | Gujarat           | Gujarat        | 1565.86                      | 1232.79                                                         | 924.59                                                                                                                         | 462.3                                                | 462.29                                                | 924.59                                      |
| 8                                                                                 | Haryana           | Haryana        | 3009.52                      | 3191.55                                                         | 2393.66                                                                                                                        | 1196.83                                              | 1196.83                                               | 2393.66                                     |
| 9                                                                                 | Jharkhand         | Jharkhand      | 683.77                       | 679.68                                                          | 509.76                                                                                                                         | 254.88                                               | 254.88                                                | 509.76                                      |
| 10                                                                                | Karnataka         | Karnataka      | 2106.57                      | 2105.69                                                         | 1579.27                                                                                                                        | 789.63                                               | 789.64                                                | 1579.27                                     |
| 11                                                                                | Madhya Pradesh    | Madhya Pradesh | 131.32                       | 38.86                                                           | 29.14                                                                                                                          | 14.57                                                | 14.57                                                 | 29.14                                       |
| 12                                                                                | Maharashtra       | Maharashtra    | 0                            | 0                                                               | 0                                                                                                                              | 0                                                    | 0                                                     | 0                                           |
| 13                                                                                | Nagaland          | Nagaland       | 2.09                         | 0                                                               | 0                                                                                                                              | 0                                                    | 0                                                     | 0                                           |
| 14                                                                                | Odisha            | Odisha         | 869.58                       | 766.43                                                          | 574.82                                                                                                                         | 287.41                                               | 287.41                                                | 574.82                                      |
| 15                                                                                | Punjab            | Punjab         | 381.91                       | 344.06                                                          | 258.04                                                                                                                         | 129.02                                               | 129.02                                                | 258.04                                      |
| 16                                                                                | Pudducherry       | Pudducherry    | 228.31                       | 238.22                                                          | 178.66                                                                                                                         | 89.33                                                | 89.33                                                 | 178.66                                      |
| 17                                                                                | Rajasthan         | Rajasthan      | 845.60                       | 762.17                                                          | 571.63                                                                                                                         | 285.81                                               | 285.82                                                | 571.63                                      |
| 18                                                                                | Tamilnadu         | Tamilnadu      | 3288.98                      | 2984.47                                                         | 2238.35                                                                                                                        | 1119.18                                              | 1119.2                                                | 2238.35                                     |
| 19                                                                                | Uttarakhand       | Uttarakhand    | 668.86                       | 642.14                                                          | 481.60                                                                                                                         | 240.80                                               | 240.80                                                | 481.60                                      |
| 20                                                                                | Uttar Pradesh     | Uttar Pradesh  | 1392.09                      | 1229.59                                                         | 922.20                                                                                                                         | 461.10                                               | 461.10                                                | 922.20                                      |
| 21                                                                                | West Bengal       | West Bengal    | 786.68                       | 1034.71                                                         | 776.03                                                                                                                         | 388.02                                               | 388.01                                                | 776.03                                      |
| **TOTAL**                                                                         |                   |                | **23062.65**                 | **21753.68**                                                    | **16315.25**                                                                                                                   | **8167.63**                                          | **8167.62**                                           | **16315.25**                                |