CrackitToday App

GST Compensation

Kumari Sonali

GST Compensation:

The Ministry of Finance has released ₹44,000 crore to the States and UTs with Legislature under the back-to-back loan facility in lieu of GST Compensation.

  • After taking into account earlier release of ₹ 1,15,000 crore (₹ 75,000 crore released on 15th July, 2021 and ₹ 40,000 crore released on 07th October, 2021), total amount released in the current financial year as back-to-back loan in-lieu of GST compensation is ₹1,59,000 crore.
  • This release is in addition to normal GST compensation being released every 2 months out of actual cess collection.
  • Subsequent to the 43rd GST Council Meeting held on 28.05.2021, it was decided that the Central Government would borrow ₹1.59 lakh crore and release it to States and UTs with Legislature on a back-to-back basis to meet the resource gap due to the short release of Compensation on account of inadequate amount in the Compensation Fund.

...Read more on our test console

...Read these too

  • What is GST Compensation Cess

    GST Compensation: The Centre will release ₹30,000 crore as GST compensation to States this month, from the compensation cess collections during the year. The pending compensation dues to States for…

  • Extension of GST Compensation Scheme

    GST Compensation: Finance Ministers of several States have demanded that the GST compensation scheme be extended beyond June 2022. The adoption of GST was made possible by States ceding almost…

  • GST Appellate Tribunal

    GST Appellate Tribunal: The Supreme Court has warned that the government had no option but to constitute the Goods and Services Tax (GST) Appellate Tribunal. GST Appellate Tribunal: The GST…