(Video by The Times of India)
The Ministry of Finance on Saturday refuted the findings of a Comptroller and Auditor General (CAG) audit report which claimed that the Centre violated the GST Compensation Cess Act.
The CAG audit report revealed that the Centre, in the first two years of the GST implementation, wrongly retained Rs 47,272 crore of GST compensation cess, which was meant to be used specifically to compensate states for the loss of revenue.
The CAG, in its 2018-19 audit report of government accounts, flagged that the amount was to be credited to the non-lapsable GST Compensation Cess collection fund for payment to the states for the loss of revenue due to the implementation of GST since 2017, but the government violated the GST law by not doing so.
Denying the allegations, the finance ministry told India Today TV