The Centre has cleared your complete GST compensation payable until date by releasing Rs 86,912 crore to states, the finance ministry mentioned on Tuesday.
Of this, Rs 25,000 crore is launched from the GST compensation fund and the steadiness Rs 61,912 crore is being launched by the Centre from its personal sources pending assortment of cess.
Of the whole compensation launched, Rs 17,973 crore is in the direction of April and May dues, Rs 21,322 crore in the direction of February-March dues and Rs 47,617 crore is the steadiness of compensation payable as much as January 2022.
“The government of India has released the entire amount of GST compensation payable to states up to May 31, 2022 by releasing an amount of Rs 86,912 crore. This decision was taken to assist the states in managing their resources and ensuring that their programmes especially the expenditure on capital is carried out successfully during the financial year,” the ministry mentioned in a press release.
Goods and Services Tax (GST) was launched within the nation with impact from July 1, 2017 and states had been assured of compensation for the lack of any income arising on account of implementation of GST for a interval of 5 years.
For offering compensation to states, cess is being levied on sure items and the quantity of cess collected is credited to compensation fund.
Bi-monthly GST compensation to states for the interval 2017-18, 2018-19 was launched on outing of the compensation fund.
As the states’ protected income has been rising at 14 per cent compounded development whereas the cess assortment didn’t improve in the identical proportion, COVID-19 additional elevated the hole between protected income and the precise income receipt together with discount in cess assortment.
In order to fulfill the useful resource hole of the states resulting from brief launch of compensation, Centre has borrowed and launched Rs 1.1 lakh crore in 2020-21 and Rs 1.59 lakh crore in 2021-22 as back-to-back mortgage to fulfill part of the shortfall in cess assortment.
In addition, Centre has additionally been releasing common GST compensation from the fund to fulfill the shortfall.
Source: www.financialexpress.com”