Lok Sabha Question No. 265 (STARRED), answered on 2018-01-05
Subject: Compensation to States
Ministry: FINANCE
Asked by: VINOD KUMAR BOIANAPALLI

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

LOK SABHA STARRED QUESTION NO 265

TO BE ANSWERED ON FRIDAY, THE 5th JANUARY, 2018 15 PAUSHA, 1939 (SAKA)

## Compensation to States

## *265 SHRI B.VINOD KUMAR

Will the Minister of FINANCE be pleased to state:

- (a) the amount of revenue received by the Government through Cess imposed on luxury goods that is payable to compensate the States; and
- (b) the manner in which the Government  plans to compensate the States, which incurred revenue losses under Goods and Services Tax (GST) regime in cases the losses exceed the estimates that have been set out?

## ANSWER

FINANCE MINISTER (SHRI ARUN JAITLEY)

## SIARRED QUESTIONNQ

- (a) The month-wise details of revenue collected by the Government through Goods and Services Tax(GST) compensation cess is as follows:

## (Amount in Rs\_Crore

| Month     |   Collection |
|-----------|--------------|
|           |         7201 |
| September |         7850 |
| October   |         8014 |
| November  |         7160 |
| December  |         7848 |
| Total     |        38073 |

- (b) The Goods and Services Tax (Compensation to States) Act; 2017 was passed by the Parliament to provide for compensation to the States for the loss of revenue arising on account of implementation of the Goods and Services Tax (GST)\_ As per Section 4 of the said Act, financial 2015-16 has been taken as the base of calculating compensation amount payable to States for loss of revenue during transition period. The projected nominal growth rate of revenue subsumed for a state during the transition period shali be 14% per annum; The year revenue for a State shall be the sum of  revenue collected by State and Local Bodies base year on account of taxes which are subsumed into GST namely, VAT, Sales Tax, Purchase Central Sales Tax, Taxes on Luxuries, Taxes on Advertisement, Tax, Duties of Excise o Medicinal & Toilet Preparations & any Cess or Surcharge or Fee levieable by the State Government: year year base during Tax, Entry

On the recommendation of the GST Council, a cess is levied on specified demerit and luxury goods, like tobacco and tobacco products, pan masala, aerated waters , motor vehicles etc. over and above the peak GST rate of 28% being

The revenue loss due to implementation of GST to the states for month of July to October has been estimated Rs\_ 24,500 crore and the same amount been released to the States as compensation to make up for the loss of revenue on bimonthly basis for month of July-August; 2017 and SeptemberOctober; 2017 as per details given in Annexure. has

Details of GST Compensation released to States as on 30.11.2017

| S. No.   | Name of State/UT   | GST compensation released for July and 2017 (Rs. in Crore) Aug   | GST compensation released for and Oct 2017 (Rs. in Crore) Sep   | Total (Rs. In Crore)   |
|----------|--------------------|------------------------------------------------------------------|-----------------------------------------------------------------|------------------------|
| (1)      | (2)                | (3)                                                              | (3)                                                             | (4)                    |
| 1        | Andhra Pradesh     | 116                                                              | 266                                                             | 382                    |
| 2        | Arunachal Pradesh  | 15                                                               | 0                                                               | 15                     |
| 3        | Assam              | 338                                                              | 331                                                             | 669                    |
| 4        | Bihar              | 692                                                              | 1054                                                            | 1746                   |
| 5        | Chattisgarh        | 253                                                              | 562                                                             | 815                    |
| 6        | Delhi              | 115                                                              | 42                                                              | 157                    |
| 7        | Goa                | 68                                                               | 35                                                              | 103                    |
| 8        | Gujarat            | 1402                                                             | 880                                                             | 2282                   |
| 9        | Haryana            | 476                                                              | 325                                                             | 801                    |
| 10       | Himachal Pradesh   | 0                                                                | 0                                                               | 0                      |
| 11       | J& K               | 367                                                              | 314                                                             | 681                    |
| 12       | Jharkhand          | 313                                                              | 489                                                             | 802                    |
| 13       | Karnataka          | 1189                                                             | 2082                                                            | 3271                   |
| 14       | Kerala             | 810                                                              | 395                                                             | 1205                   |
| 15       | Madhya Pradesh     | 433                                                              | 908                                                             | 1341                   |
| 16       | Maharashtra        | 0                                                                | 834                                                             | 834                    |
| 17       | Manipur            | 24                                                               | 0                                                               | 24                     |
| 18       | Meghalaya          | 52                                                               | 38                                                              | 90                     |
| 19       | Mizoram            | 0                                                                | 0                                                               | 0                      |
| 20       | Nagaland           | 0                                                                | 0                                                               | 0                      |
| 21       | Odisha             | 333                                                              | 687                                                             | 1020                   |
| 22       | Puducherry         | 44                                                               | 122                                                             | 166                    |
| 23       | Punjab             | 1138                                                             | 960                                                             | 2098                   |
| 24       | Rajasthan          | 1205                                                             | 706                                                             | 1911                   |
| 25       | Sikkim             | 0                                                                | 0                                                               | 0                      |
| 26       | Tamil Nadu         | 530                                                              | 102                                                             | 632                    |
| 27       | Telangana          | 7                                                                | 162                                                             | 169                    |
| 28       | Tripura            | 31                                                               | 43                                                              | 74                     |
| 29       | Uttar Pradesh      | 190                                                              | 1330                                                            | 1520                   |
| 30       | Uttarakhand        | 223                                                              | 460                                                             | 683                    |
| 31       | West Bengal        | 441                                                              | 567                                                             | 1008                   |
|          | Total              | 10806                                                            | 13694                                                           | 24500                  |

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