Bengaluru Senior Congress leader Siddaramaiah on Saturday alleged that the central government had tried to 'cover-up' the reduction in other collections by wrongly transferring Rs 47,272 crore of GST compensation cess to India's Consolidated Fund (CFI).
Citing the recent report of the Comptroller and Auditor General (CAG), Siddaramaiah tweeted that the central government is breaking the trust in the federalism of the states. He demanded the Karnataka Chief Minister BS Yeddyurappa initiate legal action in this regard.
The CAG report has revealed that the Government of India transferred the GST compensation cess to the Consolidated Fund of India. Whereas it should have been kept in the GSI Compensation Fund.
Siddaramaiah said that the central government has broken the faith in the federalism of the states. The former Karnataka chief minister said that the cess collected was not a term. That is, it could be transferred for the next financial year. He said that this amount cannot be used for any purpose other than the notified purpose.