BusinessCentre reimburses Rs 17,000 Cr of GST to states, UTs

Centre reimburses Rs 17,000 Cr of GST to states, UTs


NEW DELHI, Nov 25: The central government has released an amount worth Rs 17,000 crore to states
and Union territories towards the balance GST compensation for the period April to June 2022.
The total amount of compensation released to the States/UTs so far, including thus Rs 17,000 crore,
during the year 2022-23 is Rs 1,15,662 crore, the Ministry of Finance said in a statement on Friday.
“This is despite the fact that total Cess collection till October, 2022 is only Rs.72,147 crore and the
balance of Rs. 43,515 crore is being released by the Centre from its own resources. With this release, the
Centre has released, in advance, the entire amount of Cess estimated to be collected this year till
March-end available for payment of compensation to States,” the statement added.
This decision was taken to assist the States in managing their resources and ensuring that their
programmes, especially the expenditure on capital is carried out successfully during the financial year.
“Even in May this year, the Central Government had released Rs. 86,912 crore as provisional GST
compensation to States for the period Feb-May'2022 despite the fact that there was only about Rs.
25,000 crore in the GST Compensation Fund, by making arrangement of funds of around Rs. 62,000
crore from its own resources,” the statement said.
Goods and Services Tax was introduced in the country with effect from July 1, 2017 and states were
assured for compensation for loss of any revenue arising on account of implementation of GST as per
the provisions of the GST (Compensation to States) Act, 2017 for a period of five years.
For providing compensation to States, Cess is being levied on certain goods and the amount of Cess
collected is being credited to Compensation Fund. Compensation to States is being paid out of the
Compensation Fund with effect from July 1, 2017.
In other news, Union Finance Minister Nirmala Sitharman has chaired a pre- meeting with the
finance ministers of all States and Union Territories today for taking their inputs and suggestions for the
upcoming Budget for 2023-24.
Besides Sitharaman and state/UT finance ministers, Union MoS for Finance Pankaj Chaudhary and
Bhagwat Karad, secretaries from various arms of the Union finance ministry, Chief Economic Advisor
Anantha Nageswaran, among others attended the meeting.
The Budget for 2023-24 is likely to be tabled on February 1. Notably, it will be the last full Budget for
Modi 2.0 government before the Lok Sabha elections to be held in April-May of 2024.

The Northlines is an independent source on the Web for news, facts and figures relating to Jammu, Kashmir and Ladakh and its neighbourhood.


Please enter your comment!
Please enter your name here

Share post:


More like this

SC Directs Centre To Clarify Process Of Empanelling Of Male And Female Army Officers

NEW DELHI, Mar 5:  Noting a discrepancy in the...

Justice Abhijit Gangopadhyay Resigns As Calcutta High Court Judge

Kolkata, Mar 5: Justice Abhijit Gangopadhyay resigned as a...

Two Die After Vehicle Plunges Into Gorge In J&K’s Ramban

JAMMU, Mar 5: At least two people died in...