Rajya Sabha: Centre Released Rs 543 Crore In GST Compensation To AP

NEW DELHI: Union Minister of State for Finance, Pankaj Chaudhary stated that out of the Rs 17,000 Crore released to the States under GST compensation on November 3rd, Rs 543 crore was given to the State of Andhra Pradesh as its share.  

In a written reply to a question posed by YSR Congress Party member V. Vijayasai Reddy in the Rajya Sabha on Tuesday, the minister said it was in addition to the Rs 1,13,464 crore released to the states under GST compensation between April 2020 and March 2021. He said that since the enactment of the GST Act in 2017, the amounts due under GST compensation to the respective States for the financial years 2017-18, 2018-19 and 2019-20 have been released.

The Minister stated that though the GST collections have come down significantly due to the impact of the COVID-19 pandemic, the share of GST compensation to be paid to the States has increased.

He also clarified that there was not enough funds in the GST Compensation Fund to make payments to that extent. As per the statement one lakh, ten thousand crores of Rupees, and Rs 1,55,000 crore were released to the States in the financial years 2020-21 and 2021-22 after several discussions in the GST Council on the huge deficit in GST collection and arrears to be paid to the States.

He said the Center was regularly releasing GST compensation to the states to clear the shortfall in GST revenues. Despite releasing funds to the States in the form of loans apart from the GST Compensation Fund, the Center still owes Rs 51,798 crore under the GST Compensation for the financial years 2020-21 and 2021-22, the minister clarified. He said the GST Act has been incorporated to cover the deficit in State tax revenue for up to 14 percent per annum under GST compensation for five years from the date of implementation of GST.

Also Read: Centre Owes Andhra Pradesh Rs 4,052 Crore in GST Arrears