Finance Ministry on Saturday defended itself against Comptroller & Auditor General’s (CAG) remark regarding short crediting to the Fund of the GST Compensation Cess during FY 2017-18 and 2018-19. The Ministry also made it clear that it was not diversion.

The CAG, in its report tabled last week in the Parliament, calculated short credited amount of ₹47,272 crore for two fiscals.

“The short-crediting was a violation of the GST Compensation Cess Act, 2017. The amount by which the cess was short credited was also retained in the CFI and became available for use for purposes other than what was provided in the act,” the report had said.

Reacting on the report, Finance Ministry sources said though CAG finding is being interpreted as diversion, but the report no-where used the word diversion.


“It may be worth noting that the amount collected under compensation cess fund have been regularly and fully distributed

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