New Delhi: Just two days after presenting the Budget for Financial Year 2020-21, the Central government on Monday (February 3, 2020) announced that it will release all due Goods and Services Tax (GST) compensation to all the states in two instalments. Union Minister of State for Finance and Corporate Affairs Anurag Thakur gave the reply in Lok Sabha on Monday after several MPs from Telangana and Odisha complained during Question Hour that their states were not getting the share of the GST and Integrated Goods and Service Tax (IGST).
"All due GST compensation will be given to states in two instalments," Anurag Thakur replied. The minister said GST (Compensation to States) Act, 2017 provides for compensation to States/UTs (UT with legislature only) on account of revenue loss due to implementation of GST on a bi-monthly basis. Accordingly, he said, the states have been paid GST compensation on a bi-monthly basis with effect from July, 2017.
Thakur said the GST Compensation has been released till September, 2019 and the next bi-monthly GST Compensation is due for October-November, 2019. The minister said a total of Rs 2,10,969.49 crore has been released as GST compensation to states so far including UTs of Delhi and Puducherry after implementation of GST with effect from July 1, 2017.
Period for which compensation has been released: July, 2017March 2018 - Rs 48,785.35 crore; April 2018March 2019 - Rs 81,141.14 crore; AprilMay 2019 - Rs 17,789 crore; June July 2019 - Rs 27,956 crore; AugSept 2019 - Rs 35,298 crore.
