GST News: The government has released Rs 17,000 crore for the balance GST compensation for the April-June period of the current financial year. Official sources said that the total amount of compensation released to states so far is Rs 1,15,662 crore, including an amount of Rs 17,000 crore during 2022-23.
Finance Ministry gave information
This is despite the fact that the total tax collection till October, 2022 is only Rs 72,147 crore and the remaining Rs 43,515 crore is being released by the Center from its own resources. The Finance Ministry gave this information on Friday. “With this, the Center has released in advance the entire amount of cess estimated to be received by the end of March this year to the states for payment of compensation,” the ministry said in a statement.
Rs 1.15 Lakh Crore disbursed to States/UTs so far in the current financial year
The decision was taken to assist the states in managing their resources and ensure that their programs, especially capital expenditures, are successfully spent during the financial year. It was said in the statement that the Central Government released an amount of Rs 17,000 crore to the States / Union Territories on 24 November 2022 as compensation for the outstanding GST for April to June 2022. The statement said that including this amount, Rs 1,15,662 crore has been released to the States/Union Territories so far in the current financial year.
The central government has released Rs 17,000 crore to the states as outstanding GST compensation. With this, a total of Rs 1.15 lakh crore has been released so far in the current financial year. Cess is levied on some items to compensate the states and the amount of cess is deposited in the compensation fund.
GST was implemented from July 1, 2017.
Goods and Services Tax (GST) was implemented in the country from July 1, 2017. States were assured compensation for five years for any loss of revenue due to the implementation of GST. The ministry said, “The total cess collection till October 2022 is only Rs 72,147 crore and the remaining Rs 43,515 crore is being released by the Center from its own resources.”