Odisha seeks Rs 2,908.82 cr CST loss compensation

Bhubaneswar, June 14 (IANS) The Odisha government on Tuesday urged the central government to compensate it for central sales tax (CST) loss of Rs 2,908.82 crore for financial years 2012-13 to 2014-15.

The state raised the issue while participating in the Empowered Committee of State Finance Ministers on Goods and Services Tax (GST) held in Kolkata.

“The CST compensation claims for release by Government of India for the year 2012-13 to 2014-15 is Rs 2, 908.82 crore. The central government may release CST compensation for the year 2012-13 by the end of September,” said an official statement here.

It said that the state had received Rs 2,201.40 crore against the demand of Rs 2,755.36 crore towards CST compensation for the loss on account of CST reduction from 2007-08 to 2011-12, noting that there was a provision for compensation to the states for loss of revenue due to the implementation of GST for five years on the recommendation of the GST Council.

At the meeting, the Odisha government, represented by Additional Chief Secretary (Finance) R. Balkrishnan and Commissioner, Commercial Taxes, Saswat Mishra, raised several issues in the meeting including the question of dual authority on traders, seeking steps that this be avoided in respect of audit and assessment of a particular dealer for the same tax period to avoid harassment and litigation.

It also noted that the GST return, as designed, appeared to be complicated for a common trader to fill in with commodity wise and the HSN code wise details, and suggested that filling of HSN code wise details of the commodities in the return form may be postponed during initial stages.

Odisha also demanded that “suitable provisions may be made in the IGST Act authorizing the state government authorities to audit, assess and recover taxes on the inter-state transaction of goods and services, as the State has a stake in IGST transaction as well”, said the statement.

–IANS

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