Haryana excise and taxation minister Kiran Choudhry has asked the Central government to expedite the release of the withheld amount of Rs. 7,100 crore, on account of the Central Sales Tax (CST), and Rs. 1,950 crore, on account of the 1% CST concession granted to Maruti Udyog Limited, payable to the state.
Choudhry was speaking at the empowered committee meeting of state finance ministers held under the chairmanship of the finance minister of Bihar, Sushil Kumar Modi, at Mussoorie in Uttarakhand on Friday.
“Haryana has been losing nearly Rs. 3,000-Rs 3,500 crore every year on account of the reduction in the rate of CST. Though the new fiscal has already started, it will take more time for the Goods and Services Tax (GST) to churn out revenue. The Centre should take a decision on granting CST compensation for the current year,” said Choudhry, adding that 100% compensation should be granted for 2013-14 since huge deductions had been made during the previous two fiscals.
“Prompt action in releasing the withheld amount of CST compensation will create an atmosphere of mutual trust and understanding between the states and the Centre,” she said.
Choudhry also urged for the early release of the state’s legitimate claim of about R1,950 crore on account of the 1% CST concession granted to Maruti Udyog Limited, which had been principally agreed upon.