New Delhi: Over Rs 81,000 crore GST compensation is due to states for 2020-21, while Rs 55,345 crore is due for April-May this year, Parliament was informed on Monday. In a written reply to a question in Lok Sabha, Minister of State for Finance Pankaj Choudhary said that GST compensation of Rs 91,000 crore has been released to all States/UTs to partially meet the compensation amount due for the previous financial year. . GST Compensation Fund was not sufficient to meet the entire requirement.
“The economic impact of the pandemic has led to the need for higher compensation as it has been low” GST collection And also less collection of GST Compensation Cess,” he said. The minister also gave details of GST compensation released so far to the states. A total of Rs 81,179 crore is for 2020-21 for 27 states and union territories, while 55,345 crore dues to 26 states and union territories in the first two months (April and May) of the current fiscal.
Major states for 2020-21 are Maharashtra (Rs 15,138 crore), Karnataka (Rs 7,202 crore), Uttar Pradesh (Rs 7,109 crore), Gujarat (Rs 6,583 crore), Tamil Nadu (Rs 6,155 crore), Delhi (Rs 5,190 crore) , West Bengal (Rs 3,911 crore) and Punjab (Rs 3,752 crore). The amount payable to Maharashtra for April-May 2021 is Rs 7,995 crore, Karnataka (Rs 5,500 crore) and Gujarat (Rs 3,603 crore).
Choudhary further said that the issue of GST compensation to the states was discussed in the 41st and 42nd GST Council meetings. Accordingly, in 2020-21, the Center had borrowed Rs 1.1 lakh crore under a special window and passed it on to the states as back-to-back loans due to short-release of compensation due to insufficient resources. to help them bridge the gap. Balance in Compensation Fund.
After deliberations in the 43rd GST Council meeting, it has been decided that the Center will borrow Rs 1.59 lakh crore from the market in the current financial year through a special window and transfer it to back-to-back loans to States/UTs. will pass in the form of suitable installments as in the previous year. 75,000 crore released to States/UTs on July 15, 2021.
“In addition, based on the amount available in the Compensation Fund, the Center is also releasing regular GST compensation to the states for shortfall of GST revenue,” he said. The minister further said that the GST compensation for the financial years 2017-18, 2018-19 and 2019-20 has already been paid to the states.
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