Central government used GST compensation funds elsewhere: comptroller and Auditor General.
In a recent report published by CAG, mentioned that, Government of India transferred rupees 47,272 crore of GST compensation in the consolidated fund of India in 2017-18 and 2018-19 and use it for other purpose. Above mentioned Rupees 47,272 crore was short credited to the fund of GST compensation cess fund. Short creating was a violation of GST compensation rules that says act of 2017. It is recommended that the Ministry of Finance take immediate corrective action. This short credit of funds, collected during the year resulted into overstatement of revenue receipts of fiscal deficit for that year-- the report also reveals that accounting procedure error in the transfer of funds to public accounts. In February 2020 proceeds of the sales collected not transferred to the public account and will be transferred in subsequent year is also mentioned in the report. However government stated that depositing of funds to consolidated funds is not a diversion or using the funds elsewhere.