Centre releases Rs. 17,000 crore of GST compensation to States/UTs

Centre has released an amount of Rs. 17,000 crore towards the balance GST compensation for the period April to June, 2022 (State-wise details as per Table below) on 24.11.2022. The total amount of compensation released to the States/UTs so far, including the aforesaid amount, during the year 2022-23 is Rs.1,15,662 crore.

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 ownresources. With this release, 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. 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, 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 from its own resources.

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RM/PPG/KMN