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GST: More Than INR 2 Trillion Compensation in Past 9 Months to States

The union government has given Rs 84k cr till date to states beneath the specific borrowing window to bridge up the GST shortfall, while the provisional consideration of the GST stands at Rs 2.06 lakh cr amid April-November 2020.

The GST consideration of Rs 40k cr has been furnished towards the states and UTs so to bridge the monthly compensation between April and May 2020 this is due to the insufficient GST compensation fund was not much more satisfactory so to have effective compensation towards the stage said Minister of State for Finance Anurag Singh Thakur, in a written reply in the Lok Sabha.

The GST exemption for April and May 2020 and for full-time duration i.e June-November’20 is due for all the states and UTs because of the improper amount in the GST compensation fund while in the present financial season.

“In order to meet the shortfall in GST Compensation to be paid to States, under the special window, Rs 1.1 lakh crore will be borrowed by Government of India in appropriate tranches”

“The amount borrowed will be passed on to the States as a loan on back-to-back basis to help the States to meet the resource gap due to non-release of compensation due to inadequate balance in the Compensation Fund…Central Government has released 14 instalments of Rs. 6000 crore each to the States,”

Towards the state, the amount of Rs 84K cr is being delivered beneath the specific borrowing window.

The temporary GST compensation left towards financial 2020-21 (April-November) holds at Rs 2,06,461 crore.

The GST compensation delivered from July 2017 till dates for all the states lied at Rs 3.37 lakh cr.

With answers to the specific issues about if the govt has received the queries with respect to the people as well as firms towards providing the bogus invoices to avail the advantages of ITC (Input Tax Credit) A complete guide for understanding the basics of input tax credit and it calculation with detailed examples under GST (Goods and Services Tax) India. Read more directed by Thakur 3852 bogus invoices cases has been registered while July 2017 to Dec 2020.

The quantum of ITC claimed through the bogus invoicing sum attained at Rs 35,620 crore, during which 404 arrests have been executed with this concern.

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