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.
Dear Reader,
Dear Reader,Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
