• Notification Date: 28-11-2022
• Notification No: N/A

Centre releases Rs 17,000 crore to States as GST Compensation

On Friday, the Centre released Rs.17,000 to the States. The move has been taken by the Central Government to balance of Goods and Services Tax (GST) compensation. The amount released so far amounts to Rs. 1.15 lakh crore in the current fiscal year. According to the statement of the ministry, the Centre has released the entire amount of cess in advance that is estimated to be collected this year till March-end available for payment of compensation to states. 

GST was introduced by the Center with effect from July 1, 2017. After the introduction of GST, the Central Government ensured the states of compensation for loss of revenue arising on account of its implementation for five years.  

To raise the amount of compensation to be provided to the states, a cess is levied on certain goods by the Center. The amount of cess collected is credited to the compensation fund. In order to balance the GST compensation for the April-June period, the Centre released an amount of ₹17,000 crore to states and Union Territories on November 25. 

According to the statement, the total amount of compensation released to states and the Union Territories so far, including this amount for 2022-23 is ₹1,15,662 crore.