New Delhi: Over Rs 53,600 crore GST Compensation The states for the current financial year have not been released yet, Finance Minister Nirmala Sitharaman Said in Rajya Sabha on Tuesday.
96,576 crore has been released to the states so far in the current financial year GST Compensation to meet the revenue shortfall due to the implementation of the Goods and Services Tax (GST), and an additional Rs 1.59 lakh crore as back-to-back loans.
Under the Goods and Services Tax (GST) Act, states were guaranteed to pay bi-monthly compensation for any loss of revenue in the first five years of GST implementation with effect from July 1, 2017.
The shortfall is calculated by assuming an annual growth of 14 per cent in GST collections by the states in the base year of 2015-16.
The compensation amount is paid by levying a cess on top of the highest tax slab on luxury, demerit and sin items.
“The Center is committed to release full GST compensation to the States/UTs as per the GST (Compensation to States) Act, 2017 to meet the shortfall in GST revenue as well as levy a compensation cess over 5 years for servicing For the transition period for the loan borrowed through the special window scheme,” Sitharaman said.
Giving details of the GST compensation yet to be released to the states for the current financial year ending March, the minister said Rs 53,661 crore is yet to be released for the 2021-22 financial year.
Of this, Rs 11,563 crore is to be released to Maharashtra, Rs 6,954 crore to Uttar Pradesh, Rs 6,733 crore to Tamil Nadu, Rs 5,461 crore to Delhi and Rs 4,292 crore to West Bengal.
Sitharaman further said that the payment of GST compensation for the financial years 2017-18, 2018-19, 2019-20 and 2020-21 has already been made to the States/UTs.
“The economic impact of the pandemic has given rise to the need for higher compensation due to lower GST collections as well as lower collections of GST Compensation Cess,” he said.
In a separate reply, Minister of State for Finance Pankaj Choudhary said that the total GST collection during the current financial year till February is over Rs 13.33 lakh crore. This includes Central GST collection of over Rs 2.43 lakh crore, Integrated GST of over Rs 6.87 lakh crore, State GST of over Rs 3.11 lakh crore and Cess of Rs 90,442 crore.
96,576 crore has been released to the states so far in the current financial year GST Compensation to meet the revenue shortfall due to the implementation of the Goods and Services Tax (GST), and an additional Rs 1.59 lakh crore as back-to-back loans.
Under the Goods and Services Tax (GST) Act, states were guaranteed to pay bi-monthly compensation for any loss of revenue in the first five years of GST implementation with effect from July 1, 2017.
The shortfall is calculated by assuming an annual growth of 14 per cent in GST collections by the states in the base year of 2015-16.
The compensation amount is paid by levying a cess on top of the highest tax slab on luxury, demerit and sin items.
“The Center is committed to release full GST compensation to the States/UTs as per the GST (Compensation to States) Act, 2017 to meet the shortfall in GST revenue as well as levy a compensation cess over 5 years for servicing For the transition period for the loan borrowed through the special window scheme,” Sitharaman said.
Giving details of the GST compensation yet to be released to the states for the current financial year ending March, the minister said Rs 53,661 crore is yet to be released for the 2021-22 financial year.
Of this, Rs 11,563 crore is to be released to Maharashtra, Rs 6,954 crore to Uttar Pradesh, Rs 6,733 crore to Tamil Nadu, Rs 5,461 crore to Delhi and Rs 4,292 crore to West Bengal.
Sitharaman further said that the payment of GST compensation for the financial years 2017-18, 2018-19, 2019-20 and 2020-21 has already been made to the States/UTs.
“The economic impact of the pandemic has given rise to the need for higher compensation due to lower GST collections as well as lower collections of GST Compensation Cess,” he said.
In a separate reply, Minister of State for Finance Pankaj Choudhary said that the total GST collection during the current financial year till February is over Rs 13.33 lakh crore. This includes Central GST collection of over Rs 2.43 lakh crore, Integrated GST of over Rs 6.87 lakh crore, State GST of over Rs 3.11 lakh crore and Cess of Rs 90,442 crore.