Blog

States yet to get Rs 53,661-crore GST compensation: Finance ministry

Finance Minister Nirmala Sitharaman said in Rajya Sabha (RS) on Tuesday that Rs 96,756 crore had been disbursed to states as goods and service tax (GST) compensation, but Rs 53,611 crore was still pending.

“The Centre is committed to release full GST compensation to states/Union Territories, according to the GST (Compensation to States) Act, 2017, for the transition period by extending the levy of compensation cess beyond five years to meet the GST revenue shortfall, as well as servicing the loan borrowed through a special window scheme,” Sitharaman said in reply.

According to the data tabled by Sitharaman, the highest amount of GST compensation yet to be released will go to Maharashtra, at Rs 11,563 crore. Some other states with high GST dues pending include Uttar Pradesh (Rs 6,954 crore), Tamil Nadu (Rs 6,733 crore), and Delhi (Rs 5,461 crore).

The shortfall is calculated, assuming 14 per cent annual growth in GST collections by states over the base year of 2015-16. The five-year period ends in June.

 

Leave a Reply

Your email address will not be published.