Lok Sabha Question No. 4037 (UNSTARRED), answered on 2018-08-10
Subject: GST Compensation to States
Ministry: FINANCE
Asked by: RAHUL RAMESH SHEWALE, BHARTRUHARI MAHTAB

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA

## UNSTARRED QUESTION NO. 4037

TO BE ANSWERED ON FRIDAY, THE 10 TH  AUGUST, 2018

19 Shravana, 1940(SAKA)

## GST Compensation to States

4037 : SHRI RAHUL SHEWALE:

: SHRI BHARTRUHARI MAHTAB:

Will the Minister of FINANCE be pleased to state:

- a)  whether  the  Union  Government  has  compensated  to  the  States/UTs  for  the reported revenue deficit on account of implementation of Goods and Services Tax (GST) and if so, the details thereof, State/UT-wise;
- b)  whether the Union Government has received requests from these States/UTs to provide  funds  to  the  extent  of  their  revenue  deficit  due  to  implementation  of GST, if so, the details thereof, State/UT-wise along with the present status of such requests; and
- c)  the  other  steps  taken  by  the  Union  Government  to  ensure  timely  release  of compensation to the said States/UTs?

## ANSWER

## MINISTER OF STATE IN  MINISTRY OF FINANCE (SHRI SHIV PRATAP SHUKLA)

(a)  to  (c):    Yes  Madam,  as  per  provisions  in  Section  7  of  the  GST  (Compensation  to States) Act, 2017 loss of revenue to the States on account of implementation of Goods and Services Tax shall be payable during transition period and compensation payable to a State shall be provisionally calculated and released at the end of every two months during transition period of 5 years. As per Section 4 of the said Act, financial year 201516 has been taken as the base year for 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 shall be 14% per annum. As per  section  7(c)  of  the  said  Act,  the  total  compensation  payable  in  any  financial  year shall be difference between the projected revenue for any financial year and the actual revenue collected by a State. On this basis, the revenue loss due to implementation of GST to the states for the month of July, 2017 to March, 2018 and April to May, 2018 has been estimated to be Rs. 48178 crore (Annexure-I) and Rs. 3899 crore (Annexure-II) respectively  and  accordingly,  States/UTs  have  been  paid  GST  Compensation  of  Rs. 48178 crore for the period of July 2017 to March, 2018 and of Rs. 3899  crore for the period of April-May, 2018.

****

## Details of GST Compensation released to States/ UTs for FY 2017-18.

| S. No.   | Name of State/UT   | GST compensati on released for July and Aug 2017 (Rs. in Crore)   | GST compensati on released for Sep and Oct 2017 (Rs. in Crore)   | GST compensat ion released for Nov and Dec 2017 (Rs. in Crore)   | GST compens ation released for Jan and Feb 2018 (Rs. in Crore)   | GST compens ation released for March 2018 (Rs. in Crore)   | Total (Rs. In Crore)   |
|----------|--------------------|-------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------|------------------------|
| (1)      | (2)                | (3)                                                               | (4)                                                              | (5)                                                              | (6)                                                              | (7)                                                        | (8)                    |
| 1        | Andhra Pradesh     | 116                                                               | 266                                                              | 0                                                                | 0                                                                | 0                                                          | 382                    |
| 2        | Arunachal Pradesh  | 15                                                                | 0                                                                | 0                                                                | 0                                                                | 0                                                          | 15                     |
| 3        | Assam              | 338                                                               | 331                                                              | 15                                                               | 202                                                              | 94                                                         | 980                    |
| 4        | Bihar              | 692                                                               | 1054                                                             | 373                                                              | 922                                                              | 99                                                         | 3140                   |
| 5        | Chhattisgarh       | 253                                                               | 562                                                              | 219                                                              | 449                                                              | 106                                                        | 1589                   |
| 6        | Delhi              | 115                                                               | 42                                                               | 0                                                                | 0                                                                | 169                                                        | 326                    |
| 7        | Goa                | 68                                                                | 35                                                               | 99                                                               | 50                                                               | 29                                                         | 281                    |
| 8        | Gujarat            | 1402                                                              | 880                                                              | 252                                                              | 1153                                                             | 590                                                        | 4277                   |
| 9        | Haryana            | 476                                                               | 325                                                              | 0                                                                | 398                                                              | 262                                                        | 1461                   |
| 10       | Himachal Pradesh   | 0                                                                 | 0                                                                | 539                                                              | 336                                                              | 184                                                        | 1059                   |
| 11       | J&K                | 367                                                               | 314                                                              | 127                                                              | 329                                                              | 23                                                         | 1160                   |
| 12       | Jharkhand          | 313                                                               | 489                                                              | 94                                                               | 369                                                              | 103                                                        | 1368                   |
| 13       | Karnataka          | 1189                                                              | 2082                                                             | 859                                                              | 2116                                                             | 1289                                                       | 7535                   |
| 14       | Kerala             | 810                                                               | 395                                                              | 0                                                                | 567                                                              | 330                                                        | 2102                   |
| 15       | Madhya Pradesh     | 433                                                               | 908                                                              | 0                                                                | 1170                                                             | 157                                                        | 2668                   |
| 16       | Maharashtra        | 0                                                                 | 834                                                              | 0                                                                | 654                                                              | 1589                                                       | 3077                   |
| 17       | Manipur            | 24                                                                | 0                                                                | 0                                                                | 0                                                                | 0                                                          | 24                     |
| 18       | Meghalaya          | 52                                                                | 38                                                               | 20                                                               | 14                                                               | 16                                                         | 140                    |
| 19       | Mizoram            | 0                                                                 | 0                                                                | 0                                                                | 0                                                                | 0                                                          | 0                      |
| 20       | Nagaland           | 0                                                                 | 0                                                                | 0                                                                | 0                                                                | 0                                                          | 0                      |
| 21       | Odisha             | 333                                                               | 687                                                              | 306                                                              | 693                                                              | 245                                                        | 2264                   |
| 22       | Puducherry         | 44                                                                | 122                                                              | 58                                                               | 109                                                              | 52                                                         | 385                    |
| 23       | Punjab             | 1138                                                              | 960                                                              | 740                                                              | 1199                                                             | 581                                                        | 4618                   |
| 24       | Rajasthan          | 1205                                                              | 706                                                              | 0                                                                | 687                                                              | 301                                                        | 2899                   |
| 25       | Sikkim             | 0                                                                 | 0                                                                | 0                                                                | 6                                                                | 0                                                          | 6                      |
| 26       | Tamil Nadu         | 530                                                               | 102                                                              | 0                                                                | 0                                                                | 0                                                          | 632                    |
| 27       | Telangana          | 7                                                                 | 162                                                              | 0                                                                | 0                                                                | 0                                                          | 169                    |
| 28       | Tripura            | 31                                                                | 43                                                               | 14                                                               | 41                                                               | 20                                                         | 149                    |
| 29       | Uttar Pradesh      | 190                                                               | 1330                                                             | 0                                                                | 604                                                              | 308                                                        | 2432                   |
| 30       | Uttarakhand        | 223                                                               | 460                                                              | 183                                                              | 417                                                              | 149                                                        | 1432                   |
| 31       | West Bengal        | 441                                                               | 567                                                              | 0                                                                | 600                                                              | 0                                                          | 1608                   |
|          | Total              | 10805                                                             | 13694                                                            | 3898                                                             | 13085                                                            | 6696                                                       | 48178                  |

## Details of GST Compensation released to States/UTs for FY 2018-19

| S. No.   | Name of State/UT   | GST compensation released for April- May, 2018 (Rs. in Crore)   |
|----------|--------------------|-----------------------------------------------------------------|
| (1)      | (2)                | (3)                                                             |
| 1        | Andhra Pradesh     | 0                                                               |
| 2        | Arunachal Pradesh  | 0                                                               |
| 3        | Assam              | 0                                                               |
| 4        | Bihar              | 325                                                             |
| 5        | Chhattisgarh       | 257                                                             |
| 6        | Delhi              | 0                                                               |
| 7        | Goa                | 28                                                              |
| 8        | Gujarat            | 174                                                             |
| 9        | Haryana            | 0                                                               |
| 10       | Himachal Pradesh   | 225                                                             |
| 11       | J&K                | 147                                                             |
| 12       | Jharkhand          | 76                                                              |
| 13       | Karnataka          | 792                                                             |
| 14       | Kerala             | 67                                                              |
| 15       | Madhya Pradesh     | 130                                                             |
| 16       | Maharashtra        | 0                                                               |
| 17       | Manipur            | 0                                                               |
| 18       | Meghalaya          | 0                                                               |
| 19       | Mizoram            | 0                                                               |
| 20       | Nagaland           | 0                                                               |
| 21       | Odisha             | 282                                                             |
| 22       | Puducherry         | 79                                                              |
| 23       | Punjab             | 944                                                             |
| 24       | Rajasthan          | 106                                                             |
| 25       | Sikkim             | 0                                                               |
| 26       | Tamil Nadu         | 0                                                               |
| 27       | Telangana          | 0                                                               |
| 28       | Tripura            | 2                                                               |
| 29       | Uttar Pradesh      | 0                                                               |
| 30       | Uttarakhand        | 265                                                             |
| 31       | West Bengal        | 0                                                               |
| Total    |                    | 3899                                                            |