Center released Rs 17,000 crore GST compensation to states, says finance ministry
Category:UncategorizedThe Union government has released Rs 1.7 crore to states to balance GST compensation, the Finance Ministry said on Friday, taking the total amount released so far this year to over Rs 1.15 crore.
“With this announcement, the Center has pre-announced the entire amount of cess, which is expected to be collected by the end of March this year, and made it available for payment of compensation to the states,” the ministry said in a statement. Has gone.” Farm.
The Goods and Services Tax (GST) was introduced from 1 July 2017, and the state is guaranteed compensation for loss of income due to the implementation of GST for a period of 5 years.
To provide compensation to the state, sales tax is levied on certain items and the amount of sales tax collected is deposited in the compensation fund.
The Central Government has released Rs 170 crore to the State/UT on 24 November 2022 for the balance GST compensation for the period April to June 2022. The amount for 2022-2023 is Rs 115,662 billion, the statement said.
“This is despite the fact that the total cess collection till October 2022 is only 72,147 kroner, with the remaining 43,515 kroner being released by the Center from its own resources,” the ministry said.
He said the decision was taken to enable the state to manage its resources and ensure that programmes, especially capital expenditure, were successfully implemented during the financial year.
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