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New Delhi, Feb 28

As many as 9 States have claimed compensation of an aggregate amount of Rs 1,865.9 crore as on January 31, 2008 towards revenue loss on reduction of central sales tax (CST) from 4 to 3 per cent with effect from April 1 last year. Out of this, an amount of Rs 876.05 crore has been released and for the balance amount of Rs 992.8 crore, the claims are under process, the Economic Survey 2007-08 has said. During 2007-08 (BE), total amount of Rs 2,500 crore had been provided for compensating the States/UTs. The CST rate is due to be reduced further to 2 per cent with effect from April 1, 2008. States are now keen to have higher compensation as they have begun realise that revenue loss would be higher for them in the wake of increased economic activity. Meanwhile, the Centre has received compensation claims totaling Rs 13,167.3 crore during 2005-06, 2006-07 and 2007-08 (Jan 31, 2008) for revenue loss on account of VAT introduction at the rate of 100 per cent of revenue loss during 2005-06, 75 per cent during 2006-07 and 50 per cent during 2007-08. The Centre has already released Rs 9,247.6 crore and claims of the balance amount are in process, the Economic Survey said.

– Our Bureau

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