The CAG has found that Centre has retained GST Compensation cess amounting Rs.47,272Crore which was meant to specifically to compensate states for losses. “The GST compensation Cess Act, 2017 provides for levy of cess for the purpose of providing compensation to the statesfor loss of revenue arising due toimplementation of GST for a period specified in the Act,” CAG said. As per the act the whole cess amount is required to be credited to a non-lapsable Fund (GST Compensation Cess fund) which shall form part of the Public Account. The short transfer in 2017-18 was Rs 6,466 croreand in 2018-19 it was Rs 40,806 Crore.
