CAG findings on IGST sharing may strain Centre-state relations further

As per rules, IGST must be shared equally between Centre and states and union govt is bound to part with another 42% of its share as per 15th Finance Commission recommendations

The already strained relations between the Centre and states over the compensation mechanism under the goods and services tax (GST) may get strained further after the findings of the Comptroller and Auditor General of India (CAG) on sharing and devolution of the integrated goods and services tax (IGST) collections. 

According to GST rules which are clear on the matter, IGST has to be shared between the Centre and states in the ratio of 50:50 and the recommendations of the then 15th finance commission bind the union government to give a further 42 per cent from its share to the states.

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