Question : Compensation to States

Will the Minister of FINANCE be pleased to state:
(a) whether the Government proposes to provide some amount to compensate the Central Sales Tax until the implementation of Goods and Services Tax (GST);
(b) if so, the details thereof and the time by which the compensation is likely to be made;
(c) whether the State Government of Rajasthan has been requesting the Union Government for release of its outstanding claim for the period 2013-14 to 2015-16 amounting to Rs.3134.44 crore; and
(d) if so, the details thereof and by which the amount of claim is likely to be released and if not, the reasons therefor?

Reply (a) to (d): Pending introduction of GST in the Country, Union Cabinet in its meeting held on 17.03.2015, decided for payment of 100% CST compensation to the States/UTs for year 2010-11, 75% CST compensation for year 2011-12 and 50% CST Compensation for year 2012-13 to be worked out as per guideline dated 22.08.2008. Accordingly, full CST compensation for year 2010-11 and 2011-12 has been released to the States during FY 2014-15 & 2015-16. Rs.11709.4 cr CST compensation is admissible to States/UTs for year 2012-13. Out of which Ist installment of CST compensation amount Rs.5854.73 cr has been released to the States/UTs including Rajasthan in July, 2016. Balance amount of Rs. 5854.69 cr CST compensation for year 2012-13 is proposed to be released during current FY. This is the final payment of CST compensation to the States/UTs.