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Centre releases Rs 17,000 crore of GST compensation to states and UTs

Centre releases Rs 17,000 crore of GST compensation to states and UTs

As per an official statement, the total amount of compensation released to the states and UTs so far, including the aforesaid amount, during the year 2022-23 is Rs1,15,662 crore.

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Rs 17,000 crore paid to states and UTs as GST compensation Rs 17,000 crore paid to states and UTs as GST compensation

The Central Government on November 24 released an amount of Rs 17,000 crore to states and union territories towards the balance GST compensation for the period April to June 2022, the Finance Ministry said. 

As per an official statement, the total amount of compensation released to the states and UTs so far, including the aforesaid amount, during the year 2022-23 is Rs1,15,662 crore.

''This is despite the fact that 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 release, the Centre 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 statement added. 

''This decision was taken to assist the states in managing their resources and ensuring that their programmes especially the expenditure on capital is carried out successfully during the financial year,'' it added.

In May this year, the centre had released Rs 86,912 crore as provisional GST compensation to states for the period February-May 2022.