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Central government has released ₹17,000 crore to states balance GST compensationThe Finance Ministry on Friday said that the total amount released so far in this financial year is over Rs 1.15 lakh crore.
“With this release, the Center has released in advance the entire amount of cess estimated by the end of March this year to the states for payment of compensation,” the ministry said in a statement.
The Goods and Services Tax (GST) was implemented in the country from July 1, 2017, and states were assured compensation for a period of five years for any revenue loss arising due to the implementation of GST.
To provide compensation to the states, Cess is levied on certain goods And the amount of cess collected is deposited in the Compensation Fund.
The Central Government released an amount of ₹17,000 crore to the States/UTs on November 24, 2022, for the balance GST compensation for the period April to June 2022.
The statement said that the total amount of compensation released so far to the States/UTs during the year 2022-23, including the above amount, 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 remaining Rs 43,515 crore is being released by the Center from its own resources,” the ministry said.
The decision was taken to assist the states in managing their resources and ensure that their programmes, especially expenditure on capital, are carried out successfully during the financial year.