Lok Sabha Question No. 5 (STARRED), answered on 2020-02-03
Subject: Goods and Services Tax
Ministry: FINANCE
Asked by: Geetha Viswanath Vanga, Kotha Prabhakar  Reddy

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE LOK SABHA

## STARRED QUESTION No. 5

TO BE ANSWERED ON MONDAY, FEBRUARY 3, 2020/MAGHA 14, 1941 (SAKA)

## GOODS AND SERVICES TAX

## *5. SHRIMATI VANGA GEETHA VISWANATH: SHRI KOTHA PRABHAKAR REDDY:

Will the Minister of FINANCE be pleased to state:

- (a) whether  the  Goods  and  Services  Tax  (GST)  Council  held  its  meeting  recently  and  if  so,  the details and outcome thereof;
- (b) the views of States and the decisions which remained pending therein along with the steps being taken to ease GST rules further;
- (c) whether the cash flows of States have been seriously impacted by the unilateral decision of Union Government  adopting  a  new  pattern  in  transferring  the  devolution  of  States  share  in  taxes  and  also transfer of States share in CGST and IGST if so, the details thereof and reasons for such situation; and
- (d) whether  several  States  had  been  hit  by  the  unending  delay  in  release  of  its  compensation  of assured revenues of GST if so, the details thereof along with comments of Government thereupon and corrective  steps  being  taken  to  release  GST  and  other  compensation  on  time  in  future  along  with  the amount pending to each State at present?

## ANSWER MINISTER OF FINANCE (Ms. NIRMALA SITHARAMAN)

- (a) to (d) A Statement is laid on the table of the House.

## STATEMENT AS REFERRED TO IN REPLY TO PARA A TO D OF LOK SABHA STARRED QUESTION  NO  5  FOR  ANSWER  ON  3 rd   FEBRUARY,  2020/MAGHA  14,  1941  (SAKA) REGARDING GOODS AND SERVICES TAX.

- Part (a): The 38 th meeting of GST Council was held on 19 th December, 2019 at New Delhi. A Press Release  dated  19 th December,  2019  regarding  the  recommendations  made  by  the  said  GST  Council meeting is available in public domain at http://www.gstcouncil.gov.in/press-cbic.
- Part  (b): The  discussion  and  views  of  the  States  in  all  previous  GST  Council  meetings  (till  the  37 th meeting held on 20 th September, 2019) as well as the implementation status of the recommendations of GST  Council  are  well  documented  in  the  Minutes  of  Meeting,  available  in  public  domain  at http://www.gstcouncil.gov.in/meetings.  Based  on  the  recommendations  of  the  GST  Council,  various changes are carried out to the Central Goods and Services Tax Rules, 2017 from time to time in order to simplify procedure and improve compliance under GST. The last such change to CGST Rules, 2017 was carried out vide notification No. 02/2020 - Central Tax dated 01 st January, 2020.
- Part (c): Article 269A of the Constitution provides that the Goods and Services Tax on supplies in the course of inter-State trade or commerce shall be levied and collected by  the Government of India and such tax shall be apportioned between the Union and the States. Accordingly, IGST (Integrated Goods and Service Tax) is settled (apportioned) between the Union and the States/UTs by Centre every month in terms of Sections 17 and 18 of the Integrated Goods and Services Tax Act, 2017. The details of State GST collection and IGST settlement to States since implementation of GST are as under:
- Part (d): GST (Compensation to States) Act, 2017 provides for compensation to States/UTs (UT with Legislature  only)  on  account  of  revenue  loss  due  to  implementation  of  GST  on  bimonthly  basis. Accordingly, the States have been paid GST Compensation on bimonthly basis with effect from July, 2017.  The  GST  Compensation  has  been  released  till  September,  2019  and  the  next  bimonthly  GST Compensation is due for October-November, 2019. The details of GST compensation released to States including UTs of Delhi and Puducherry after implementation of GST with effect from 01.07.2017 are as below:

| Financial Year                 | SGST collection (in Rs. crores)   | IGST Settlement (in Rs. crores)   |
|--------------------------------|-----------------------------------|-----------------------------------|
| 2017-18                        | 1,71,803                          | 1,02,163                          |
| 2018-19                        | 2,78,817                          | 1,74,948                          |
| 2019-20 (upto 31 st Dec, 2019) | 2,28,062                          | 1,54,937                          |

| Period for which compensation has been released   |   Amount (in Rs crores) |
|---------------------------------------------------|-------------------------|
| July, 2017 - March, 2018                          |                 48785.3 |
| April, 2018 - March, 2019                         |                 81141.1 |
| April - May, 2019                                 |                 17789   |
| June - July, 2019                                 |                 27956   |
| Aug - Sept, 2019                                  |                 35298   |
| Total                                             |                210969   |