The Finance Ministry said that the Center released Rs 30,000 crore to the states as GST compensation on 27 March. Around 63,000 crore rupees are pending for the current financial year. So far Rs 70,000 crore has been released in the Goods and Services Tax (IGST) compensation item for the financial year ended 31 March. This is in addition to the Rs 1.10 lakh crore released to the states under the special borrowing system to compensate for the reduction in GST collections in the current financial year.
The ministry said in a statement, on March 27, the central government released Rs 30,000 crore on GST compensation to states for 2020-21. In this financial year, a total of Rs 70,000 crore has been released so far for compensation.
28,000 crore settlement in IGST
In addition, the Center has disposed of Rs 28,000 crore under the Integrated GST (IGST) item. Of this, 14,000 crore rupees have been shared equally between the states and the center.
Centre releases Rs. 30,000 crore as GST Compensation as well as Rs. 28,000 crore as IGST ad-hoc settlement to the States/UTs
— Ministry of Finance (@FinMinIndia) March 30, 2021
According to the Ministry, after considering the GST compensation, borrowings and IGST settlement released so far, only 63,000 crore rupees is pending for the States and Union Territories in the GST compensation item for 2020-21.