States Arrive At CST Relief Formula

State Finance Ministers on April 16 has announced the contours of the compensation package that they would demand from the Centre for the decrease in central sales tax (CST) ceiling rate from 3 per cent to 2 per cent. With the Centre and the States yet to accord on the compensation package, there is still uncertainty on the date from which CST rate would be cut to 2 per cent. States are likely to submit their stance on the compensation package in writing to the Union Finance Minister, Mr P. Chidambaram, in the next few days.