The temporary retention of GST cess in the Consolidated Fund of India is not a diversion of the funds, finance ministry officials said in response to a CAG report.
The finance ministry officials have refuted the CAG report which claimed that there was short crediting of the GST Compensation Cess collections, totalling ₹47,272 crore during FY18 and FY19.
The compensation due to the states for 2017-18 and 2018-19 was fully paid, and that the time taken in the reconciliation of compensation receipts can't be termed as diversion of GST Cess Fund, officials added.