Chhattisgarh has no objection on implementation of the Goods and Service Tax (GST) provided the Centre's compensation on loss due to phasing-out of Central Sales Tax is given on time, state chief minister Raman Singh said here today.

"Almost all states have given their in-principle approval to the GST. We are no different. We do not have any problem with the GST. We want that government gives us money on account of CST loss this financial year," Singh told PTI here.

The Chief Minister, along with state officials, also met Finance Minister Arun Jaitley and urged him to expedite release of the CST compensation of Rs 2,157 crore to the state.

The Finance Minister has assured that Chhattisgarh will get one-third of its balance CST compensation as first instalment this financial year and the remaining in next two years, state officials who attended the meeting said.

GST is considered to be a very significant step in the field of indirect tax reforms in the country which would amalgamate a large number of central and state taxes into a single tax. GST would replace central excise duty and service tax and subsume state VAT, central sales tax and luxury tax, among others.

The idea of moving towards GST was first mooted by the then finance minister P Chidambaram in his budget for 2006-07. Initially, it was proposed that GST would be introduced by 1 April 2010. However, several deadlines have been missed and it is yet to be rolled out.