GST - Centre releases Rs 44000 crore compensation to States
By TIOL News Service
NEW DELHI, MAR 31, 2021: THE Centre on Tuesday said it had released Rs. 30,000 crore to States as Goods and Services Tax (GST) compensation, while Rs. 14,000 crore was remitted as an ad-hoc settlement of Integrated GST (IGST).
The Finance Ministry said it had released Rs. 30,000 crore on March 27 to States as part compensation admissible for financial year 2020-21. The total amount of compensation released so far is Rs. 70,000 crore.
In addition, an amount of Rs. 28,000 crore was released, with Rs. 14,000 crore to States and Rs. 14,000 crore to Centre, by way of ad-hoc settlement of IGST on Tuesday.
As per the decision of the GST Council, the Centre had arranged a special borrowing window and allowed back-to-back loansin 20 instalments amounting to Rs. 1,10,208 croreto compensate for the revenue shortfall arising from the implementation of the GST regime.
GST compensation of approximately Rs. 63,000 crore is still pending to States and Union Territories for FY21, noted the ministry.
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