Govt Decided to Pay Off States’ GST Compensations But In Two Installments

In line with the protocols of the GST regime, the central government is all set to release compensation for the states in two installments, said Union Minister Anurag Thakur in Lok Sabha.

This settlement was the conclusion of complaints made by Telangana and Odisha MPs during the question hour. During the session, their absolute focus was that their respective states are not getting the share of Goods and Service Tax (GST) and Integrated Goods and Service Tax (IGST) as pledged by the government.

Union Minister Anurag Thakur said the due GST compensation will be given to states in two installments.
The minister even claimed that as per the GST Compensation for States Act 2017, the states are compensated against the loss of revenue incurred due to the implementation of GST on a bi-monthly basis.

Relating to the statement he said, the states have already been paid the GST compensation on a bi-monthly basis with effect from July 2017.

He further stated that since the debut of GST in the country a total of Rs. 2,10,969.49 crore has been diffused to different states including the UTs of Delhi and Puducherry as compensations under GST.

Read Also: Revised GST Rates Make Families Save 4% According to the Budget 2020 The GST rate cuts announced in Budget 2020 by the finance minister, Nirmala Sitaraman will provide an annual benefit of INR 1 trillion to the Indian customers. This, in total, will help citizens in the country to save approx 4% of their monthly spending, according to the Union Budget speech 2020-21 made by the finance minister. Read more

Compensations were released on July, 2017 March 2018 – Rs 48,785.35 crore; April 2018 March 2019 – Rs 81,141.14 crore; April May 2019 – Rs 17,789 crore; June July 2019 – Rs 27,956 crore; Aug Sept 2019 – Rs 35,298 crore.