GST compensation to States mounting up

Over Rs 81,000 crore GST compensation is due to states for 2020-21, while for April-May this year, Rs 55,345 crore is outstanding, Parliament was informed on Monday.

In a written reply to a question in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said GST compensation of Rs 91,000 crore has been released to all states/ UTs to partly meet the compensation payable for last fiscal year as the amount in GST compensation fund was not adequate to meet the full requirement. "The economic impact of the pandemic has led to higher compensation requirement due to lower GST collection and at the same time lower collection of GST compensation cess," he added. The minister also gave details of GST compensation yet to be released to states. Total Rs 81,179 crore is due to 27 states and UTs for 2020-21, while for the first two months of the current fiscal (April and May) Rs 55,345 crore is outstanding payment to 26 states and UTs. The amount due to major states for 2020-21 include Maharashtra (Rs 15,138 crore), Karnataka (Rs 7,202 crore), Uttar Pradesh (Rs 7,109 crore), Gujarat (Rs 6,583 crore), Tamil Nadu (Rs 6,155 crore), Delhi (Rs 5,190 crore), West Bengal (Rs 3,911 crore) and Punjab (Rs 3,752 crore).