Action on release of CST claims under consideration

Government today said action on release of outstanding central sales tax claims of states is under consideration.
The Centre had made a provision of Rs 9,300 crore in the budget 2013-14 towards CST compensation.
In the current fiscal, no compensation has been releasled to any state, Minister of State for Finance J D Seelam said in a written reply in the Rajya Sabha.
"Action is under consideration," he said in response to query by when the outstanding CST claims to states will be released.
In 2006, states and the Centre had reached an agreement to cut CST by 1 per cent every year beginning April 1, 2007 and eliminate it by April 1, 2010 to coincide with launch of the proposed Goods and Services Tax (GST).

CST phase-out was part of the introduction of the GST regime under which various levies like excise, service tax and states tax, like value-added tax, entry tax and purchase tax would be subsumed in a single tax.