The Centre has agreed to fully compensate states for the losses suffered due to reduction in central sales tax – CST estimated at 14,000 crore rupees in 2010-11.Talking to reporters in New Delhi today, Chairman of Empowered Committee of State Finance Ministers, Asim Dasgupta said ,it was decided after the state finance ministers met Union Finance Minister Pranab Mukherjee to discuss the GST rollout.Yesterday, the Government had approved 7,029 crore rupees compensation to states for CST loss in 2010-11. Of this 3,000 crore is likely to be released this fiscal. Once the proposed Goods and Services Tax (GST) is rolled out, other existing indirect taxes, including the CST, would be subsumed into it.AIR correspondent reports,CST, a tax on movement of goods from one state to another, was reduced from 4 per cent to 3 per cent in 2007-08 .It was further reduced to 2 per cent in 2008-09 after the introduction of VAT, as it was considered distortion.