Union Finance Minister Nirmala Sitharaman on Monday stated that Andhra Pradesh will be given Rs 689 crore as GST compensation. She said that the amount was pending to the state for the period between April and June, 2022.
Replying to the question raised by YSRC MP Vallabhaneni Balashowry in the Lok Sabha on Monday, the FM said that this pending amount would be released from the Compensation Fund wherein monthly cess collection was being transferred and credited.
Speaking in the lower house, Sitharaman said, “As per the provision of GST (Compensation to States) Act, 2017 and taking into account Rs 1.10 lakh crore for financial year 2020-21 and Rs 1.59 lakh crore for 2021-22 released to States as back to back loans in the lieu of GST compensation, the entire GST compensation of all the States and Union Territories, including Andhra Pradesh has been cleared by the Centre up to May 31, 2022.”
She further elaborated, “Taking into account the loan of Rs 2,311 crore in financial year 2020-21 and Rs 3,272 crore in 2021-22 released to Andhra in the lieu of GST compensation and release of bimonthly GST compensation from July, 2017 to June, 2022, only Rs 689 crore was pending to the State as GST compensation for April-June, 2022,” the Finance Minister elaborated.
She also revealed that some states have requested for extension of payment of GST compensation beyond the transition period of five years.
“As per section 18 of the Constitution (One Hundred and First Amendment) Act, 2016, compensation to the States for loss of revenue arising on account of implementation of the goods and services tax can be provided for a period of five years. Central Government is committed to payment of GST compensation to States/UTs for five years as per law enacted by the Parliament according to the Constitutional provision,’’ she said.