PANJIM: The Central government has released GST compensation of Rs 30,000 crore to States as part compensation admissible for the Financial Year (FY) 2020-21 on 27th March, 2021. Out of the amount, the Centre released Rs 245.6173 crore to Goa.
The total amount of compensation released to the States so far for 2020-21 is Rs 70,000 crore. This is over and above the Rs 1.10 lakh crore released to States under the special borrowing mechanism to compensate them for shortfall in the Goods and Services Tax (GST) collection this financial year.
As per the decision of the GST Council, back to back loan of Rs 1,10,208 crore has also been released in lieu of shortfall in release of GST compensation for FY 2020-21.
In addition to this, the Centre has also released Rs 28,000 crore (Rs 14,000 crore to States and Rs 14,000 crore to Centre) by way of adhoc settlement of Integrated GST (IGST) on March 30, 2021. Out of this amount, the Centre has released RS 76 crore to Goa.
Taking into account the release of GST compensation, back to back loan and adhoc IGST settlement, balance of only Rs 63,000 crore approximately GST compensation is pending to States/UTs for FY 2020-21, said the Ministry of Finance in a statement. The Ministry added that GST compensation is pending to States/UTs for FY 2020-21.
Under the GST structure, taxes are levied under 5 per cent, 12 per cent, 18 per cent and 28 per cent slabs. On top of the highest tax slab, a cess is levied on luxury, sin and demerit goods and the proceeds from the same are used to compensate states for any revenue loss.
