Skip to content
The DonkeyThe Donkey
  • Home
  • Account Payable
  • Account Number
  • Account Recovery
  • Account Riot
  • -
  • -
Account Payable

Center Clears All GST Compensation Payable to States to Date

Posted on May 31, 2022May 31, 2022 by Amy A. Stuart
31
May

The Center has erased all of the GST compensation payable till date by releasing Rs 86,912 crore to the states, the Ministry of Finance announced on Tuesday.

Of this amount, Rs 25,000 crore is released from the GST compensation fund and the balance of Rs 61,912 crore is released by the Center from its own resources pending collection of the tax.



Of the total compensation released, Rs 17,973 crore corresponds to the April and May dues, Rs 21,322 crore corresponds to the February to March dues and Rs 47,617 crore corresponds to the balance of the compensation payable until January 2022.

“Government of India has released the entire amount of GST compensation payable to the states till 31st May 2022 by releasing an amount of Rs 86,912 crore. This decision was made to help the states in managing their resources and to ensure that their programs, especially the capital expenditures are successfully completed during the fiscal year,” the ministry said in a statement.

The Goods and Services Tax (GST) was introduced in the country effective July 1, 2017 and states were assured of compensation for loss of revenue arising from the implementation of the GST for a period of five years.

To provide compensation to states, a tax is levied on certain goods and the amount of tax collected is credited to the compensation fund.

The semi-monthly compensation of GST to the States for the period 2017-18, 2018-19 was released on time from the compensation fund.

While protected state revenue increased by 14%, while tax collection did not increase in the same proportion, COVID-19 further widened the gap between protected revenue and actual revenue, including including reduction in tax collection.

In order to bridge the resource shortfall of states due to the short release of compensation, the Center has borrowed and released Rs 1.1 lakh crore in 2020-21 and Rs 1.59 lakh crore in 2021-22 in the form of back-to-back loan to meet part of the shortfall in the collection of cess.

In addition, the Center has also released regular GST compensation from the fund to cover the shortfall.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear reader,

Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.

Support quality journalism and subscribe to Business Standard.

digital editor

Related posts:

  1. ConnectedEconomy ™ pillar form framework | PYMNTS.com
  2. No income tax payable on charges for technical services not rendered in India: ITAT
  3. Brokerages Expect FLEETCOR Technologies, Inc. (NYSE: FLT) to Show Quarterly Sales of $ 632.82 Million
  4. Jervois secures US $ 100 million bond offer to fund Idaho Cobalt operations
This entry was posted in Account Payable. Bookmark the permalink.
Amy A. Stuart

Ruckus at Abuja Plank Market
Why is Sun Pharma one of the big losers today?
Categories
  • Account Number
  • Account Payable
  • Account Recovery
  • Account Riot
  • Uncategorized

account number accounts payable bank accounts capitol hill donald trump email address income tax joe biden law enforcement phone number president donald social security states capitol united states washington dc

Recent Posts
  • How to Get a Wells Fargo Credit Limit Increase – Forbes Advisor

  • Payoneer Global Inc. (NASDAQ:PAYO) Chief Financial Officer Michael G. Levine sells 7,536 shares

  • News from Trump today: Tax returns to be seen by Congress after Supreme Court rules against him

  • Drex heart attack: The Vancouver radio host will be on the air until 2023

  • Why Bank Customers Should Sign Their ATM Cards – Banker – The Whistler Newspaper

Archives
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • Privacy Policy
  • Terms and Conditions
  • Home
  • Account Payable
  • Account Number
  • Account Recovery
  • Account Riot
  • WooCommerce not Found
  • Newsletter