Central Government releases nearly Rs. 20K Crore as GST compensation

GST Compensition

The Central Government has released nearly Rs 20,000 crore as GST compensation cess to the states and union territories

As per officials and reports, the central government has released Rs 19,950 crore.

In the current fiscal year the central government has so far released Rs 1,20,498 crore towards GST compensation to the states and union territories. However, Only Rs 78,874 crore was collected towards compensation cess in the current fiscal year till January 31st 2020.

Finance ministry officials said the centre had collected a total GST compensation cess of Rs 62,611 crore in FY 17-18 out of which Rs 41,146 crore was released to the states and union territories in FY 17-18.

In FY 18-19, Rs 95,081 crore was collected as GST compensation cess of which Rs 69,275 crore had been released to the states and union territories.

As on 31st March 2019, Rs 47,271 crore was collected as compensation cess which had remained unutilized after the release of the GST compensation to the states and union territories in fiscal years 17-18 and 18-19.

The compensations was to be drawn from a pool created by levy of cess on few sin and luxury goods over and above the GST tax rate.

The shortfall is calculated assuming a 14 per cent annual growth in GST collection by the states over the base year of 2015-2016.

The central government had collected Rs 95,081 crore as GST compensation out of which only Rs 69,275 crore had been released to the states and union territories as GST compensation.