The Centre has circulated Rs 30,000 crore to the states as GST compensation on March 27, and about Rs, 63,000 crores is pending for the current fiscal, the Finance Ministry announced on Tuesday. In this article, we will discuss Govt releases Rs 30,000 cr to states as GST compensation. In this article, we will discuss Government releases Rs 30000 cr to states.
Government releases Rs 30000 cr to states
The Centre has announced the notification to released Rs 30,000 crore to the states as GST compensation on March 27, and about Rs 63,000 crore is pending for the current fiscal year.
The aggregate amount of GST compensation released so far this fiscal ending March 31 is Rs 70,000 crore. This is over and above the Rs, 1.10 lakh crore acquired to states under the special borrowing mechanism to compensate them for shortfall in the Goods and Services Tax (GST) collection this financial year.
The Central Government has published GST Compensation of Rs 30,000 crore to States as part compensation valid for FY 2020-21 on March 27, 2021. The total amount of compensation acquired so far for the year 2020-21 is Rs 70,000 crore,” the ministry announced in a statement.
Further Notification by Central Government
In addition, the Centre has also confirmed Integrated GST (IGST) of Rs 28,000 crore, of which Rs 14,000 crore has been shared equally between states and the Centre.
Taking into account the release of GST Compensation, back to back the loan and Adhoc IGST settlement, the balance of only Rs 63,000 crore approx GST Compensation is pending to States/UTs for FY 2020-21,” the ministry stated.
Under the GST structure, taxes are imposed under 5 per cent, 12 per cent, 18 per cent and 28 per cent slabs. On top of the highest tax slab, a cess is charged on luxury, sin and demerit goods and the proceeds from the same are utilized to compensate states for any revenue loss.
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