The Central Government released an amount of Rs. 17,000 crore to States/UTs on 24.11.2022 towards the balance GST compensation for the period April to June, 2022 (State-wise details as per Table below). The total amount of compensation released to the States/UTs so far, including the aforesaid amount, during the year 2022-23 is Rs.1,15,662 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. This decision was taken to assist the States in managing their resources and ensuring that their programmed especially the expenditure on capital is carried out successfully during the financial year.
States were guaranteed compensation for revenue loss resulting from GST implementation for five years when it went into force on July 1, 2017.
The Goods and Services Tax (Compensation to States) Act of 2017 imposes a GST Compensation Cess. The purpose of levying this cess is to make up for the revenue loss experienced by the states as a result of the implementation of the GST on July 1, 2017, for a period of five years or as determined by the GST Council.
The compensation cess of Rs 17000 crores given to all States and Union Territories is as under
|Name of the State/UT||(Rs. in crore)|
|Jammu and Kashmir||208|