GST compensation: West Bengal says Centre owes it Rs 2,409 crore

• The WB govt. said the Center owes it Rs 2,409.96 crore
• The development comes in response to Union FM Nirmala Sitharaman's statement that the state had not sent a claim for GST compensation with an AG certificate from 2017-18 to 2021- 22
• Additionally, the WB government has rejected the FM's claim that the state owes Rs 1,841 crore to the Center for CRPF deployment

The West Bengal government on Friday evening said the Center owes it Rs 2,409.96 crore, in response to Union Finance Minister Nirmala Sitharaman's statement that the state had not sent a claim for GST compensation with an Accountant General (AG) certificate from 2017-18 to 2021- 22.

Responding to allegations that West Bengal's dues were neglected, Sitharaman said in Parliament that GST compensation to states is provided when audited figures are provided, but West Bengal has not submitted them since 2017. “…FM has made a statement that West Bengal has not sent the GST compensation claim with AG certificate from 2017-18 to 2021-22. The state government does not agree with the statement...,” it said in a statement.

“So far compensation has been paid on net basis for West Bengal only for two years 2017-18 and 2018-19. For the remaining periods (FY 2019-20, FY 2020-21, FY 2021-22) and the period 01.04.2022 to 30.06.2022, the compensation was released on the basis of gross income. If we consider the net revenue, then the GOI owes West Bengal Rs 2,409.96 crore for the balance,” he added.

The finance minister had said in December that state governments' GST claims would be settled once they received the relevant certificate documents from their respective AGs. The relevant AG must provide confirmation that a particular state must receive such compensation, she said.

The West Bengal government has rejected the finance minister's claim that the state owes Rs 1,841 crore to the Center for CRPF deployment. “The forces are deployed as per the instructions of the Election Commission of India. The consent of the state governments is not taken in connection with the need for deployment of central forces during these elections,” the statement said. “Accordingly, the expenditure related to the deployment of CAPF personnel for election duty should be borne by the Government of India and not by the states,” he added.

Responding to Sitharaman's statement that a reconciliation report was awaited from the West Bengal government regarding the Gram Sadaka Yojana, she said all the information required by the Ministry of Rural Development had been sent. “Information was sought through the post office and it was all sent to them. MMR has not yet raised any further questions against this report," the statement reads.