Centre Releases Rs 17,000 Crore GST Compensation to States; Total Rs 1.15 Lakh Crore Released This Fiscal: Finance Ministry
The central government has released Rs 17,000 crore to states towards balance GST compensation, taking the total amount released so far this fiscal to over Rs 1.15 lakh crore, the Finance Ministry said on Friday.
New Delhi, November 25: The central government has released Rs 17,000 crore to states towards balance GST compensation, taking the total amount released so far this fiscal to over Rs 1.15 lakh crore, the Finance Ministry said on Friday.
"With this release, the Centre has released, in advance, the entire amount of Cess estimated to be collected this year till March-end available for payment of compensation to States," the ministry said in a statement. Chhattisgarh CM Bhupesh Baghel Reiterates Demand for NPS Amount, GST Compensation During Pre-Budget Meeting.
Goods and Services Tax (GST) was introduced in the country with effect from July 1, 2017, and states were assured of compensation for the loss of any revenue arising on account of the implementation of GST for a period of five years. Centre Released Rs 1,15,000 Crore in Total Current FY to States, UTs to Meet GST Compensation Shortfall.
For providing compensation to states, a cess is levied on certain goods and the amount of cess collected is credited to the compensation fund.
The central government released an amount of Rs 17,000 crore to states/UTs on November 24, 2022, towards the balance GST compensation for the period April to June 2022. The total amount of compensation released to the states/UTs so far, including the aforesaid amount, during the year 2022-23 is Rs 1,15,662 crore, the statement added.
"This is despite the fact that total Cess collection till October 2022 is only Rs 72,147 crore and the balance of Rs 43,515 crore is being released by the Centre from its own resources," the ministry said.
This decision was taken to assist the states in managing their resources and ensuring that their programmes, especially the expenditure on capital are carried out successfully during the financial year, it added.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)