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Govt will honour compact to give states their share of GST: Sitharaman

Sitharaman's statement comes after Kerala last week threatened to take the central government to Supreme Court over delay in the payment of compensation to states

Finance Minister Nirmala Sitharaman speaks to journalists after a cabinet meeting in Delhi (Photo: PTI)
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Finance Minister Nirmala Sitharaman. File Photo: PTI)

BS Web Team New Delhi
The central government will keep its "compact" to give state their share of the goods and services tax (GST) though the cess collected has been inadequate, said Finance Minister Nirmala Sitharaman on Saturday. 

Sitharaman's statement comes after Kerala last week threatened to take the central government to Supreme Court over delay in the payment of compensation to states. The finance ministers of Punjab, Kerala, Delhi, Rajasthan, Chhattisgarh, and Madhya Pradesh had met Sitharaman on December 4 and urged that funds due for four months since August be released as soon as possible.

“In the last GST collection, the cess fund wasn’t adequate