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Recently Released GST Compensation Of Rs 17,000 Cr To States: Govt

The Minister further stated that the economic impact of the pandemic has led to higher compensation requirements due to lower GST collection and at the same time lower collection of GST compensation cess.

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Union Minister of State for Finance Pankaj Chaudhary in a written reply to a question in Rajya Sabha on Tuesday said that GST compensation for financial years 2017-18, 2018-19 and 2019-20 has already been paid to the States.

The Minister further stated that the economic impact of the pandemic has led to higher compensation requirements due to lower GST collection and at the same time lower collection of GST compensation cess. 

Recently, the Centre released Rs 17,000 crore on December 03  towards GST compensation to States from the Compensation Fund. This is in addition to GST compensation of Rs 1,13,464 crore released to States/ UTs with the legislature to partly meet the compensation payable for the period April 2020 to March 2021 as the amount in GST Compensation Fund was not adequate to meet the full compensation requirement, the Minister stated.

Chaudhary stated that the issue of shortfall of cess collection into Compensation Fund and GST compensation to States/UTs due to economic impact of the pandemic have been deliberated in 41, 42 and 43 GST council meetings. 

"As per the decision of the GST Council, Rs 1.1 lakh crore for FY 2020-21 and Rs 1.59 lakh crore for FY 2021-22 has been released to States/ UTs as back-to-back loans to meet the resource of the States/UTs due to shortfall in GST compensation," he said. 

The Minister stated that GST compensation of Rs 37,134 crore for period April'20 to March’21 and Rs 14,664 crore for April-September 2021 is pending to States/ UTs as per provisional figures.


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GST Compensation states centre govt