Over Rs 53,600 crore GST compensation yet to be released to states this fiscal: FM – Times of India

NEW DELHI: Over Rs 53,600 crore of GST compensation for the present fiscal is but to be launched to the states, finance minister Nirmala Sitharaman mentioned within the Rajya Sabha on Tuesday.
Up to now this fiscal, Rs 96,576 crore has been launched to the states on account of GST compensation, and a further Rs 1.59 lakh crore has been given as back-to-back mortgage to make good the income shortfall on account of Items and Companies Tax (GST) implementation.
Beneath the Items and Companies Tax (GST) legislation, states had been assured to be compensated bi-monthly for any lack of income within the first 5 years of GST implementation from July 1, 2017.
The shortfall is calculated assuming a 14 per cent annual progress in GST collections by states over the bottom yr of 2015-16.
The compensation quantity to be paid from the compensation fund is arrived at by levying cess on prime of the very best tax slab on luxurious, demerit and sin items.
“Centre is dedicated to launch full GST Compensation to the States/UTs as per GST (Compensation to States) Act, 2017 for the transition interval by extending the levy of Compensation cess past 5 years to fulfill the GST income shortfall in addition to servicing the mortgage borrowed by means of particular window scheme,” Sitharaman mentioned.
Giving particulars of GST compensation but to be launched to the states for present fiscal ending March, the minister mentioned Rs 53,661 crore is but to be launched for the 2021-22 fiscal.
This embrace Rs 11,563 crore to be launched 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 additional mentioned GST compensation for monetary years 2017-18, 2018-19, 2019-20 and 2020-21 has already been paid to the states/UTs.
“The financial impression of the pandemic has led to greater compensation requirement on account of decrease GST assortment and on the identical time decrease assortment of GST compensation cess,” she mentioned.
In a separate reply, minister of state for finance Pankaj Chaudhary mentioned the overall GST assortment in the course of the present fiscal until February is over Rs 13.33 lakh crore. This embrace central GST mop up of over Rs 2.43 lakh crore, built-in GST of over Rs 6.87 lakh crore, state GST of over Rs 3.11 lakh crore and cess of Rs 90,442 crore.

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