FM Says : No AG certificate has been received from Kerala in a year.
The lack of authenticated certificates from the Accountant General (AG), according to Union Finance Minister Nirmala Sitharaman, is to blame for the delay in the payment of Goods and Services Tax (GST) compensation to several states
The process for the AG’s certification is set down in the law and is (required) between the Center, the States, and the AG (accountant general). Therefore, until the AG provides the authentication,” she stated.
The finance minister emphasized that if there is a delay in the AG’s verification, it is entirely up to the AG and the state governments to resolve the issue.
The authentication certificate’s arrival at the central government is delayed if there is an issue between them, she explained.
She further emphasised that for state governments to receive GST reimbursement, a great deal more effort is required. “The state governments must, if I may use the term, be efficient in their dealings with the AG.
“However, without an AG certificate, it is really difficult for me to travel beyond a certain point,” she explained.
The minister also announced that, per the GST Council’s resolution, a total of Rs. 86,912 crore has been distributed as GST compensation to all states through May 31, 2022.
Sitharaman raised worry with Kerala’s refusal to submit AG certifications for GST compensation for many fiscal years. The minister stated that since the implementation of the GST, the southern state has not submitted an AG certificate for GST compensation for 2017-18, 2018-19, 2019-20, or 2020-21.
However, the central government has been accused of late funding. She advised a Kerala MP to meet with the state government and get the AG certificates at once.
“You have not sent (the AG certificate) even for one year and you keep blaming us for not paying you on time. According to the finance commission report, all states received two tax devolution instalments. “Kerala also profited,” she stated.
Sitharaman guaranteed prompt payment after receiving the certificates.
The finance minister stated that Tamil Nadu’s 2017-18 AG’s certificate has been received and released.