(a) the details of pending dues of Goods and Services Tax (GST) compensation amount to the states having revenue shortfall due to the introduction of GST, State-wise; and
(b) the amount of GST compensation paid to the states since the implementation of GST regime, State-wise?
MINISTER OF STATE IN MINISTRY OF FINANCE
(SHRI ANURAG SINGH THAKUR)
(a): As per provisions in Section 7 of the GST (Compensation to States) Act, 2017 loss of revenue to the States shall be calculated and released at the end of every two months’ period, for 5 years. Accordingly, admissible GST compensation for FY 2017-18, 2018-19 and 2019-20 has been released to all States/ UTs (w.e.f. 01.07.2017). Further, GST compensation of Rs. 40,000 crore has been released to all States/ UTs to meet partly the bi-monthly compensation for period April-May, 2020 as GST Compensation Fund was not adequate to meet the full compensation for period April-May, 2020. The balance GST Compensation for the period April-May, 2020 and GST Compensation for the full period June-November’20 is pending to all States/UTs due to inadequate amount in GST Compensation Fund during current Financial Year.
In order to meet the shortfall in GST Compensation to be paid to States, under the special window, Rs.1.1 lakh crore will be borrowed by Government of India in appropriate tranches. The amount so borrowed will be passed on the States as loan on back-to-back basis to help the States to meet the resource gap due to non-release of compensation due to inadequate balance in the Compensation Fund. As per this decision, Central Government has released 14 installments of Rs. 6000 crore each to the States as per Annexure-I. All States have decided to take benefit of this assistance to tide over the temporary resource gap. The states will be paid full GST Compensation as per GST (Compensation to States) Act, 2017 for the transition period by extending the levy of Compensation cess beyond 5 years to meet the GST revenue shortfall as well as servicing the loan borrowed through special window scheme. The details of pending GST compensation to States/UTs for period April-Nov, 2020 is as per Annexure-II.
(b): The details of GST compensation released to States/ UTs since the implementation of GST regime is as per Annexure-II.