GST Compensation Worth ₹ 52,000 Crores Due To States Till September

Approximately ₹ 52,000 crores of Goods and Services Tax (GST) compensation was due to the states till September 2021, government has said.

Giving this information, minister of state for finance Pankaj Chaudhary told Lok Sabha said in a written reply to a question on Monday that ₹ 1,10,208 crore and ₹ 1.59 lakh crore was released to states as back to back loan in 2020-21 and 2021-22 respectively.

Total GST compensation pending till September 2021 stood at ₹ 51,798 crore, he said. This includes ₹ 13,153 crore pending to Maharashtra, ₹ 5,441 crore to Uttar Pradesh, ₹ 4,943 crore to Tamil Nadu, ₹ 4,647 crore to Delhi and ₹ 3,528 crore to Karnataka.

The minister further informed the lower house in response to a separate question that ₹ 17,000 crore was released on November 3, 2021, towards GST compensation to states from the compensation fund.

This is in addition to GST compensation of ₹ 43,303 crore released to states and ₹ 1.59 lakh crore as back to back assistance during the current financial year, he added.

Under the GST law, states are compensated for any loss of revenue arising on account of implementation of GST for five years till June 2022.

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