Stating that non payment of Central Sales Tax (CST) arrears by the Centre till date has created a trust deficit among the Centre and States, the Haryana Government has proposed that from the current fiscal onwards either states should be compensated fully for their CST losses till the Goods and Services Tax (GST) regime is actually rolled out, or the CST rate be hiked to four per cent.
Furthermore, going against the Empowered Committee of State Finance Ministers' suggestion that the threshold turnover for levying GST should be at 10 per cent, Haryana Government is of the view that it should not be less than 20 per cent.
Haryana Finance Minister Capt. Abhimanyu who participated in the meeting of the Empowered Committee of State Finance Ministers held on Tuesday, said that in order to resolve the pending issue of CST compensation to states, the GST Council should be mandated to deliberate on how to fully compensate states on CST losses. While referring to the letter received from the Finance Ministry regarding the threshold in GST regime, Abhimanyu said that Haryana Government is of the view that there is no need to refer back the issue of threshold to the Committee on Dual Control, Threshold and Exemptions because this Committee has already recommended the threshold at Rs 20 lakh after due deliberations.
According to a statement issued by the Haryana Government, Abhimanyu reminded that the empowered panel had earlier decided consensually that settling of CST compensation will be the pre-requisite for further discussions on GST regime implementation.