GST compensation for April-June 2022: Centre releases Rs.17,000 Cr
The government has released Rs.17,000 crore towards the balance GST compensation for the April-June period of the current fiscal. The Central government, in a public statement, said, “The total amount of compensation released to the states/ UTs so far, including the aforesaid amount, during the year 2022-23 is Rs.1,15,662 crore.”
This is despite the fact that the total cess collection till October 2022 is only Rs.72,147 crore and the balance of Rs.43,515 crore is being released by the Centre from its own resources.
With this, the government has released, in advance, the entire amount of cess estimated to be collected this year till March-end available for payment of compensation to states, the Finance Ministry said in a statement.
This decision was made to assist the states in managing their resources and ensuring that their program, especially the expenditure on capital is carried out successfully during the financial year.
At the time of GST implementation, on July 1, 2017, the Central government had agreed to compensate states for five years till June 2022, and protect their revenue at 14 percent per annum over the base year revenue of 2015-16.
The Centre, in May 2022, had released Rs.86,912 crore as provisional GST compensation to States for the period Feb-May 2022, even though there was only Rs.25,000 crore in the GST Compensation Fund. The government arranged for funds of nearly Rs.62,000 crore from its resources.
[With Inputs from IANS]
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