GST compensation to states delayed due to low realisation of cess: FM

Finance Minister Nirmala Sitharaman on Wednesday said inadequate realisation of GST compensation cess is delaying the payment to states and that the Centre was not according any differential treatment to states.

The minister also said the government is committed to paying to states as per the provisions of the GST (Compensation to States) Act, 2017.

At the time of the introduction of GST, it was agreed that the Centre would compensate states for shortfall in GST collections as per a defined formula.

"Now, there has been a delay in giving the 14 per cent compensation and we are running late