The Centre on Friday released ₹17,000 crore to states towards the balance of Goods and Services Tax (GST) compensation. This takes the total amount released so far in the fiscal year to over ₹1.15 lakh crore.
“With this, 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 ministry said in a statement.
GST was introduced with effect from July 1, 2017, and states were assured of compensation for loss of revenue arising on account of its implementation for five years.
To provide compensation to states, a cess is levied on certain goods and the amount of cess collected is credited to the compensation fund.
The Centre released an amount of ₹17,000 crore to states and Union Territories on November 25, towards the balance GST compensation for the April-June period, it said.
The total amount of compensation released to states/UTs so far, including this amount for 2022-23 is ₹1,15,662 crore, according to the statement.
Source: https://economictimes.indiatimes.com/news/economy/policy/centre-releases-rs-17000-crore-of-gst-compensation-to-states-and-uts/articleshow/95766123.cms