Non-release of CST compensation caused trust deficit: Odisha

Bhubaneswar/New Delhi, July 27 (IANS) The Odisha government on Tuesday said non-release of compensation on account of loss towards Central Sales Tax (CST) reduction has caused trust deficit between the central and state governments.

Participating at the empowered group of state finance ministers on Goods and Service Tax (GST) at New Delhi, Odisha Finance Minister Pradeep Amat requested the centre to compensate it for CST loss.

"The Odisha government has claimed Rs 2,755.36 crore towards CST compensation for the loss on account of CST reduction from 2007-08 to 2011-12 but received Rs 2, 201.40 crore for the said period," he said.

While the state claimed Rs 2,908.82 crore for the period of 2012-13 to 2014-15, it has received only Rs 240.53 crore, he added.

As the implementation of GST has already been delayed, the Minister urged the council to review the finance position for considering compensation to the states for reduction of CST from the year 2013-2014 onwards.

He, however, supported the Goods and Service Tax (GST), which it believes would bring reform in the taxation system in the country.

He also reiterated state's demand for allowing the mineral-bearing states to levy green tax on mining activities.

The minister also urged the Centre to allow states to impose tax on tobacco and tobacco products.