• Notification Date: 13-12-2022
• Notification No: N/A

GST claims of states to be settled after receiving AG Certificate: Nirmala Sitharaman

On Monday, Union Finance Minister Nirmala Sitharaman clarified that GST claims of state governments will be settled by the finance ministry after the submission of relevant papers along with a certificate from their respective accountant generals. 
In Monday's parliamentary session, the Union Finance Minister stated that the central government is committed to pay all Goods and Services Tax (GST) compensation to states. For the last five years, the Central Government has been doing so continuously without fail. 
But in order to receive the compensation, the respective accountant general (AG) has to provide a certificate that the particular state has to get this much of compensation, she said. 

Sitharaman added that if there is a delay in the AG-certified claim from states, then the GST compensation for that particular state will be pending. Hence, to receive the compensation on time, the AG certificate along with the state's claim, has to be submitted. Once the certificate is received; at that moment the money will also get released. 

From the central government's side, it is up to date, and whatever money it gets as cess, is distributed among states, Sitharaman said. 
She added that the government is up to date on all claims that came from states and were approved by the respective AG. The central government has paid all the dues. 

There are several state governments that believe their GST compensation is pending as the central government needs the necessary papers as the money belongs to the taxpayers.  

“The moment I receive the papers, the AG certification, even if there is a contention between the Centre and a state, it has to be sorted out. I cannot be sitting on somebody's money,” she said. 
Sitharaman said that the differences with states can be sorted out when officials of the central and state governments have a sitting and talk about the matter. The minister said half of the GST compensation for June has already been cleared while the rest would be given once adequate cess is collected.