New Delhi: The Center has approved the entire amount of Goods and Service Tax ,GSTAn official statement on Tuesday said that by releasing an amount of Rs 86,912 crore to the states, compensation is payable till May 31.
This payment was made to assist states in managing their resources and ensure that their programmes, especially expenditure on capital, are carried out successfully during the financial year.
“This decision has been taken despite the fact that only around Rs 25,000 crore is available GST Compensation Fund, The balance amount is being released by the Center from its own resources, pending collection of the cess,” the statement said.
The GST system was introduced in the country in July 2017 and states were assured compensation for any revenue loss caused by the implementation of GST as per the provisions for a period of five years.
bimonthly GST Compensation Timely release to the states for the period 2017-18 and 2018-19 compensation fund, While the protected revenue of states has been growing at a compounded growth rate of 14 per cent, while cess collection has not grown in the same proportion, COVID-19 has further widened the gap between protected revenue and actual revenue receipt, including a reduction in cess collection. ,
Thus, to meet the resource gap of states due to low release of compensation, the Center borrowed Rs 1.1 lakh crore in 2020-21 and released Rs 1.59 lakh crore in 2021-22 as back-to-back loans. Did it Meet a part of shortfall in cess collection.
This payment was made to assist states in managing their resources and ensure that their programmes, especially expenditure on capital, are carried out successfully during the financial year.
“This decision has been taken despite the fact that only around Rs 25,000 crore is available GST Compensation Fund, The balance amount is being released by the Center from its own resources, pending collection of the cess,” the statement said.
The GST system was introduced in the country in July 2017 and states were assured compensation for any revenue loss caused by the implementation of GST as per the provisions for a period of five years.
bimonthly GST Compensation Timely release to the states for the period 2017-18 and 2018-19 compensation fund, While the protected revenue of states has been growing at a compounded growth rate of 14 per cent, while cess collection has not grown in the same proportion, COVID-19 has further widened the gap between protected revenue and actual revenue receipt, including a reduction in cess collection. ,
Thus, to meet the resource gap of states due to low release of compensation, the Center borrowed Rs 1.1 lakh crore in 2020-21 and released Rs 1.59 lakh crore in 2021-22 as back-to-back loans. Did it Meet a part of shortfall in cess collection.