Page 3 - Gst Compensation

Centre releases Rs 6,000 cr to states as GST compensation

Till now, 70% of the total estimated Goods and Services Tax compensation shortfall has been released to the states

Many states request GST compensation extension beyond 5 years: FM

Many states have requested extension of the compensation mechanism under the GST beyond June 2022, Finance Minister Nirmala Sitharaman said on Monday. Under the Goods and Services Tax (GST) law, states were guaranteed to be compensated bi-monthly for any loss of revenue in the first five years of GST implementation from July 1, 2017. The shortfall is calculated assuming a 14 per cent annual growth in GST collections by states over the base year of 2015-16. The 5-year period ends in June 2022. The compensation amount to be paid from the compensation fund is arrived at by levying cess on top of the highest tax slab on luxury, demerit and sin goods. In a written reply in the Lok Sabha, Sitharaman said the central government is committed to giving GST compensation to states/UTs for 5 years as per the Constitutional provision. To a query whether the government has received proposals from state governments requesting extension of compensation mechanism for another five years in view of

GST compensation cess period already extended till March 2026: FM

The Union Minister was responding to a query on Karnataka Chief Minister Basavaraj Bommai's statement requesting the Centre to extend the GST compensation period, which ends in June.

Karnataka CM Bommai asks Centre to extend GST compensation period

After presenting the Rs 2,65,720-crore budget of the State for 2022-23, he told reporters that it was revenue surplus but due to Covid-19 it has become revenue-deficit

Extending GST compensation period may push back rate rejig: CBIC chairman

In a Q&A, CBIC chairman Vivek Johri talks about if revenues are to reach the levels where compensation would perhaps no longer be an issue, then GST rate structure, exemptions too need to be reviewed

Ajit Pawar urges Centre to extend GST compensation to states for two years

Maharashtra Deputy Chief Minister and state Finance Minister Ajit Pawar on Wednesday urged the union government to extend the period of GST compensation from Centre to States for two more years

Raise your share in centrally-sponsored schemes: States to FM Sitharaman

States also want GST compensation extended till 2027

States demand extension of GST compensation for another 5 years

The GST compensation to states for revenue shortfall resulting from subsuming of local taxes such as VAT in the uniform national tax Goods and Services Tax (GST) will end in June next year

About Rs 52,000 cr GST compensation pending to states till Sept: FinMin

Nearly Rs 52,000 crore of GST compensation was due to the states as of September 2021, Parliament was informed on Monday. Giving details of Goods and Services Tax (GST) compensation released and pending to be released as on November 24, 2021, Minister of State for Finance Pankaj Chaudhary said in the Lok Sabha that Rs 1,10,208 crore and Rs 1.59 lakh crore was released to the states as back to back loan in 2020-21 and 2021-22 fiscals, respectively. Total GST compensation pending till September 2021 stood at Rs 51,798 crore, he said. This includes Rs 13,153 crore pending to Maharashtra, Rs 5,441 crore to Uttar Pradesh, Rs 4,943 crore to Tamil Nadu, Rs 4,647 crore to Delhi and Rs 3,528 crore to Karnataka. States of Arunachal Pradesh, Manipur, Mizoram and Nagaland do not have any GST compensation pending from the Centre. In reply to a separate question, Chuadhary said the Centre has released Rs 17,000 crore on November 3, 2021, towards GST compensation to states from the compensation

Centre releases Rs 17,000 crore to states as GST compensation

With this, the total amount of compensation released to the states/UTs during 2021-22 so far is Rs 60,000 crore

GST shortfall: Centre releases Rs 1.6 trillion to states this fiscal year

This release of funds as back-to-back loans is in addition to the bi-monthly GST compensation being given out of cess collection.

No additional borrowing by Centre to meet GST compensation in FY22

The Centre will stick to its borrowing programme for FY22 and will not tap the market for more funds to meet the GST compensation shortfall for states.

Centre releases Rs 40k cr to states/UTs to meet GST compensation shortfall

Total amount of Rs 1.15 trn released in current year to meet GST compensation shortfall

Top headlines: Govt moves on bank privatisation; Lupin to enter diagnostics

Govt will be borrowing Rs 5.03 trillion from the market in the second half, unchanged from what it had planned, but including the GST compensation paid to states. More in top headlines of the day

Centre won't hit market to make up for GST compensation shortfall

To borrow Rs 5.03 trillion in Oct-March 2022

Structural changes in GST

Correction to revenue-neutral rate must not be delayed

States slam FM plan to not extend GST compensation after June 2022

Opposition-ruled states saymatter was deferred for further discussions during Friday's meeting

Oppn-ruled states demand extension of GST compensation beyond June 2022

Finance ministers of Opposition-ruled states have demanded that the GST compensation cess regime be extended beyond June 2022.

Kerala FM seeks extension of GST compensation regime

Kerala Finance Minister pitched for extending the GST compensation beyond June next year as he highlighted that the state is already grappling with significant revenue shortfall.

GST Council extends levy of compensation cess till March 2026

The GST Council has agreed to levy compensation cess for an extended period upto March 2026 to enable the Centre to repay the loans, to compensate states for GST collection shortfall