Last Updated on 2 years by INDIAN AWAAZ
By Aditya Raj Das
The government has released the entire amount of GST compensation payable to States due to date by releasing an amount of 86 thousand 912 crores rupees.
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. This decision has been taken despite the fact that only 25 thousand crore rupees are available in the GST Compensation Fund. The balance is being released by the Centre from its own resources pending collection of Cess.
In order to meet the resource gap of the States due to short release of compensation, the Centre has borrowed and released over one lakh crore rupees in 2020-21 and one lakh 59 thousand crore rupees in 2021-22 as back-to-back loans to meet the shortfall in cess collection. All the States have agreed to the above decision.
In addition, the Centre has also been releasing regular GST compensation from the fund to meet the shortfall. With the concerted efforts by the Centre and States, gross monthly GST collection including Cess has been showing remarkable progress.