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The Government of India has released the entire amount of GST compensation payable to States up to 31st May, 2022 by releasing an amount of Rs.86,912 crores. This decision was taken to assist the States in managing their resources and ensuring that their programmes especially the expenditure on capi
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FAQ :
The Centre has released the entire amount of GST compensation payable to states up to May 31, 2022, amounting to Rs. 86,912 crores.
This decision was taken to assist the states in managing their resources and ensuring that their programmes, especially capital expenditure, are carried out successfully.
No, only about Rs. 25,000 crores was available in the GST Compensation Fund. The balance was released by the Centre from its own resources, pending the collection of Cess.
GST compensation was assured to states for any revenue loss arising from the implementation of GST, as per the GST (Compensation to States) Act, 2017, for a period of five years from July 1, 2017.
In previous years, the Centre borrowed and released funds as back-to-back loans to states to cover shortfalls in cess collection, including Rs. 1.1 lakh crore in 2020-21 and Rs. 1.59 lakh crore in 2021-22.
Maharashtra received the highest GST compensation amount, totalling Rs. 14,145 crores.
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