The Finance Ministry said on Wednesday that the Center has already released eight months’ GST compensation arrears to the states for the financial year ended March 31, 2022.
The ministry said in a statement that the government has released the GST compensation arrears for eight months and Rs 78,704 crore is pending due to insufficient amount in the cess fund. Generally, GST compensation is released for ten months (April to January) for any financial year, while compensation for February-March is given in the next financial year, the ministry said.
According to the ministry, “GST compensation to the states has been released for eight out of ten months of the financial year 2021-22. The pending amount will also be released when the amount received in the cess fund is there.
This is the system of GST compensation to the states
While implementing GST on July 1, 2017, the Modi government at the Center had assured the states that by July 2022, the Center would compensate the states for the fall in tax collections on implementation of GST. It was arranged that this assessment would be done on the basis of revenue growth of 14 percent every year.
GST collection broke records in March, ₹ 1.42 lakh crore to the exchequer
Significantly, the GST collection has increased to Rs 1.42 lakh crore in March. This is the highest GST collection in a month so far. The GST collection of March has broken the collection record of Rs 1,40,986 lakh crore in January, 2022. The collection of March, 2022 is 15 percent more than the GST collection of March last year and 46 percent more than the GST collection of March 2020. In March, CGST collection was Rs 25,830 crore, SGST collection was Rs 32,378 crore, IGST collection was Rs 74,470 crore and Cess was Rs 9,417 crore.