The Centre has launched Rs 30,000 crore to the states as GST compensation on March 27, and about Rs 63,000 crore is pending for the present fiscal, the Finance Ministry mentioned on Tuesday.
The complete quantity of GST compensation launched thus far this fiscal ending March 31 is Rs 70,000 crore. This is over and above the Rs 1.10 lakh crore launched to states underneath the particular borrowing mechanism to compensate them for shortfall within the Goods and Services Tax (GST) assortment this monetary yr.
“The Central Government has released GST Compensation of Rs 30,000 crore to States as part compensation admissible for FY 2020-21 on March 27, 2021. The total amount of compensation released so far for the year 2020-21 is Rs 70,000 crore,” the ministry mentioned in an announcement.
In addition, the Centre has additionally settled Integrated GST (IGST) of Rs 28,000 crore, of which Rs 14,000 crore has been shared equally between states and the Centre.
“Taking into account the release of GST Compensation, back to back loan and adhoc IGST settlement, balance of only Rs 63,000 crore approx GST Compensation is pending to States/UTs for FY 2020-21,” the ministry added.
Under the GST construction, taxes are levied underneath 5 per cent, 12 per cent, 18 per cent and 28 per cent slabs. On prime of the best tax slab, a cess is levied on luxurious, sin and demerit items and the proceeds from the identical are used to compensate states for any income loss.
