Haryana Excise and Taxation Minister Kiran Choudhry has asked the Central Government to expeditiously release the withheld amount of Rs7,100 crore to the State on account of the Central Sales Tax (CST), and Rs1,950 crore for the one per cent CST concession granted to Maruti Udyog limited.
Speaking at the Empowered Committee meeting of State Finance Ministers, Choudhry pointed out that Haryana had been losing about Rs3,000-3,500 crore every year on account of the reduction in the rate of CST.
Though the new financial year 2013-14 has commenced, the roll-out of the Goods and Services Tax (GST) system may take more time. The Centre should take a decision on granting CST compensation for the current year.
Since huge deductions have been made during the two previous financial years, full 100 per cent compensation should be granted for 2013-14.
“Prompt action in releasing the withheld amount of CST compensation would create an atmosphere of mutual trust and understanding between the States and the Central Government,” she said.
The Minister also urged for early release of the legitimate claim of about Rs1,950 crore on account of the one per cent CST concession granted to Maruti Udyog limited, which has been principally agreed upon.
On VAT, Choudhry said that total collections on account of VAT in 2011-12 aggregated Rs12,401 crore while the collection in 2012-13 totalled Rs14,385 crore, representing an increase of 16 per cent.