• 21 Jul 2022 12:09 PM
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Details of GST Compensation released to States/UTs for a period of 5 years

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GST compensation to States for loss of revenue arising on account of implementation of GST for a period of five years

GST compensation to States for loss of revenue arising on account of implementation of GST for a period of five years

As per section 18 of the Constitution (One Hundred and First Amendment) Act, 2016, Parliament shall, by law, on the recommendation of the Goods and Services Tax Council, provide for compensation to the States for loss of revenue arising on account of implementation of the goods and services tax for a period of five years. This was stated by Union Minister of State for Finance Shri Pankaj Chaudhary in a written reply to a question in Rajya Sabha today.

The Minister stated that the issue of compensation to States/UTs and augmenting resources under GST were discussed in detail in the 45th GST Council meeting held in Lucknow. Consequent to the decision of the Council, two Group of Ministers (GoMs), namely GoM on GST System Reforms and GoM on Rate Rationalization have been constituted. GoM on Rate Rationalization has submitted its interim report, recommending certain inverted duty corrections and pruning of exemptions, which was discussed and considered in the last GST Council meeting held at Chandigarh.

As a result, the Minister stated, the continued reforms in GST undertaken by Centre and States, on the recommendations of the GST Council, buoyancy in GST revenue has been achieved in the recent months. The average monthly gross GST collection for the first quarter of the FY 2022-23 has been ₹1.51 lakh crore against the average monthly collection of ₹1.10 lakh crore in the first quarter of the last Financial year showing an increase of 37%, the Minister stated.

The Minister stated that a few States have requested for extension of payment of GST compensation beyond transition period of five years.

The Minister further stated that as per Section 7 of the GST (Compensation to States) Act, 2017, the States are required to be compensated for loss of revenue due to implementation of GST (w.e.f. 01.07.2017) for 5 years' period. During transition period, the States' revenues are protected at 14% growth rate per annum over the base year revenue (2015-16). Accordingly, the States are being compensated for any shortfall against their protected revenue. The details of GST compensation due and released to States/ UTs for the year 2017-18 to 2022-23 is as per ANNEXURE.

Annexure

Details of GST Compensation released to States/ UTs for the year

(in Rs. Crore)

S.
N
o
Name of
State/UT
GST compen-sation released for FY 2017-18
GST
compen-sation
released
for FY
2018-19
GST
compen-sation
released
for FY
2019-20
GST
compen-sation
released
for FY
2020-21
GST
compen-sation
released
for FY
2021-22
GST
compen-sation
released
for FY
2022-23
Total
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
1
Andhra Pradesh
619
0
3028
5220
2536
663
12067
2
Arunachal Pradesh
15
0
0
6
0
0
21
3
Assam
980
454
1306
1875
40
192
4847
4
Bihar
3140
2798
5464
4039
0
0
15441
5
Chhattisgarh
1262
2608
4538
2846
657
777
12688
6
Delhi
326
5185
8424
9808
7230
782
31755
7
Goa
281
502
1093
1395
1085
206
4562
8
Gujarat
4882
8788
15558
13719
2181
1183
46311
9
Haryana
1461
3916
6617
5453
949
376
18772
10
Himachal Pradesh
1059
2084
2619
1623
452
386
8223
11
J & K
1160
1667
3281
1834
0
0
7942
12
Jharkhand
1368
1098
2219
2625
933
452
8695
13
Karnataka
7670
12465
18628
15500
5707
2926
62896
14
Kerala
2102
3532
8111
7063
4121
1572
26501
15
Madhya Pradesh
2668
3302
6538
5788
1946
1174
21416
16
Maharashtra
3077
9363
19233
28421
13626
519
74239
17
Manipur
24
0
0
22
0
0
46
18
Meghalaya
140
66
157
270
0
0
633
19
Mizoram
0
0
0
11
0
0
11
20
Nagaland
0
0
0
14
0
0
14
21
Odisha
2348
4241
5332
4243
0
0
16165
22
Puducherry
387
693
1057
586
348
228
3299
23
Punjab
5109
8985
12187
7826
3481
2409
39997
24
Rajasthan
2899
2280
6710
6704
741
222
19556
25
Sikkim
6
0
0
36
0
0
42
26
Tamil Nadu
1018
5363
11423
12739
8169
1433
40146
27
Telangana
0
0
3054
4487.4473
296
0
7837
28
Tripura
149
172
293
219
0
0
833
29
Uttar Pradesh
2432
0
9123
13680
8028
846
34109
30
Uttarakhand
1432
2442
3375
2519
1030
419
11217
31
West Bengal
1608
2615
6200
7828
5383
1208
24842
Total
49622
84619.40
165568
168399.73
68939
17973
555121