New Delhi: The Central Government has misused the Goods and Services Tax (GST) fund. In 2016-17 and 2017-18, the Center illegally deposited Rs 4,282 crore in GST compensation funds in the country’s organized fund (consolidated fund). The fund has been used for other purposes, according to the Controller and Auditor General of India (CAG).
The CAG said the central government had to keep the fund in the GST compensation fund. With that money out of that fund, the states are given GST compensation. But the government did not do so and kept the money in an organized fund. As a result, the central government has violated the GST Compensation Cesses Act 2017. After an audit of Statements 6, 7 and 13 on the Cess collection, it was found that Rs 4,282 crore had not been sent to the GS8T Cess Collection Fund. In the meantime, the CAG has asked the finance ministry to take immediate steps to rectify the error. In 2016-17, Rs 45,041 crore was collected for GST compensation. However, only Rs 54,285 crore was transferred to the compensation fund. The CAG also found fault with the accounting process. Instead of being shown as ‘other financial services’ when sending money to a public account, it was seen as a ‘grant of grants to states’. That’s why the grants to the states were so high. The CAG has made it clear that GST compensation is not the right of states, not grants. However, the CAG also said that in February 2020, the finance ministry had said that money that had not been collected in the form of cesses would be transferred to public accounts next year. In addition, the Ministry of Finance acknowledged errors in the accounting process. “It simply came to our notice then.
