Rs 15,340 crore GST Compensation to states allotted by the Centre

An amount of Rs 15,340 crore was given to the states by the Centre as GST compensation despite insignificant tax collection because of the relief provided in terms of filing of returns and payments of taxes owing to the lockdown, government insider said. GST Compensation

The sum discharged incorporates the second portion of GST compensation to states of over Rs 14,100 crore for the October-November period, they stated, including that the legislature had expected to clear any pending levy for that period.

Under GST law, states are ensured full compensation for any income loss for the initial five years after the goods ans services tax (GST) was introduced in July 2017.

Remuneration sums for December to January period and further on keep on being expected, even as monthly GST compensation necessity for states in 2020-21 is being pegged at Rs 20,250 crore, government insiders said.

In 2019-20, the Center had discharged Rs 120,498 crore GST compensation to states while it had gathered distinctly about Rs 95,000 crore as pay cess.

Government sources highlighted the issue of higher payouts to states versus cess assortments. On a normal, month to month GST compensation cess necessity was Rs 14,000 crore while the cess assortment normal was uniquely in the scope of Rs 7,000-8,000 crore for each month, they said.


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