MINISTER OF STATE IN MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) to (d): The GST compensation cess levied under Section 8 of the GST (Compensation to States) Act, 2017 is transferred into a non-lapsable Fund known as GST Compensation Fund which forms part of the Public Account of India as provided in Section 10(1) of the act. The States are being compensated for any loss of revenue arising on account of implementation of GST for five years out of the Compensation Fund as per Section 10(2) of the said Act. GST compensation for financial years 2017-18, 2018-19 and 2019-20 has already been paid to the states. The economic impact of the pandemic has led to higher compensation requirement due to lower GST collection and at the same time lower collection of GST compensation cess. GST compensation of Rs. 91,000 crore has been released to all States/ UTs to partly meet the compensation payable for the period April’20 to March’21 as the amount in GST Compensation Fund was not adequate to meet the full compensation requirement. Details of GST compensation yet to be released to each State is as per Annexure.
Few States have requested for payment of GST Compensation to States on account of loss of revenue due to implementation of GST as per GST (Compensation to States) Act, 2017 and in addition the general request from the States are like revision of FRBM limit, additional fund for procurement of medical equipment and increasing the devolution grant etc. Central Government has considered various such requests and is committed to provide all possible assistance to States.
The issue of GST Compensation to States has been deliberated in the 41st and 42nd GST Council meetings. Accordingly, FY 20-21, Centre had borrowed Rs. 1.1 lakh crore under a special window and passed on to the States as back-to-back loan to help the States meet the resource gap due to short-release of compensation on account of inadequate balance in the Compensation Fund. Subsequent to deliberations in the 43rd GST Council meeting, it has been decided that the Centre is borrowing Rs. 1.59 lakh crores from the market through special window in current FY and passing it on to the States/ UTs as a back to back loan in appropriate tranches as was done in last year. As per this decision Rs. 75000 crore has been released to States/ UTs on 15.07.2021. In addition, depending on the amount available in the Compensation Fund, Centre has also been releasing the regular GST compensation to States to make up for GST revenue shortfall.
(e): The details of gross GST collection (SGST+CGST+IGST+GST Compensation Cess) pre-settlement since March 2020, month-wise, are as under:
Month Gross GST Collection (in Rs. Crores)
2019-20 2020-21 2021-22
April 32172 139708
May 62151 102709
June 90918 92849
July 87422
August 86449
September 95480
October 105155
November 104963
December 115174
January 119875
February 113143
March 97590 123902
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Annexure
Provisional GST compensation yet to be released to States/ UTs
(Rs. in crore)
S.No Name of State/UT Pending GST compensation for period April''20-March''21 Pending GST compensation for period April-May, 21
(1) (2) (3) (4)
1 Andhra Pradesh 2493 1559
2 Arunachal Pradesh 0 0
3 Assam 1017 606
4 Bihar 1538 1801
5 Chhattisgarh 1231 1547
6 Delhi 5190 2823
7 Goa 734 411
8 Gujarat 6583 3603
9 Haryana 2328 2130
10 Himachal Pradesh 680 714
11 J & K 757 829
12 Jharkhand 1241 969
13 Karnataka 7202 5500
14 Kerala 3046 2812
15 Madhya Pradesh 2437 2468
16 Maharashtra 15138 7995
17 Manipur 0 0
18 Meghalaya 140 79
19 Mizoram 0 0
20 Nagaland 0 0
21 Odisha 1389 1349
22 Puducherry 274 288
23 Punjab 3752 3124
24 Rajasthan 2981 2361
25 Sikkim 30 0
26 Tamil Nadu 6155 3574
27 Telangana 2515 1558
28 Tripura 93 88
29 Uttar Pradesh 7109 4048
30 Uttarakhand 1215 951
31 West Bengal 3911 2157
Total 81179 55345
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