Lok Sabha Question No. 56 (UNSTARRED), answered on 2020-02-03
Subject: GST Compensation
Ministry: FINANCE
Asked by: P.R. Natarajan, Balashowry Vallabbhaneni, Arvind Ganpat Sawant, A. Ganeshamurthi, Kani K. Navas, A.K.P. Chinraj, Balubhau (Alias Suresh Narayan) Dhanorkar

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

LOK SABHA UNSTARRED QUESTION NO. 56 TO BE ANSWERED ON MONDAY, THE 3 RD  FEBRUARY, 2020 MAGHA 14, 1941 (SAKA)

## GST Compensation

- 56: Shri Natarajan P.R., Shri Balashowry Vallabhaneni, Shri Arvind Ganpat Sawant, Shri A. Ganeshamurthi, Shri K. Navaskani, Shri A.K.P. Chinraj, Shri Balubhau Alias Suresh Narayan Dhanorkar:

Will the Minister of FINANCE be pleased to state:

- a) whether many States are suffering high revenue shortfall since implementation of the Goods and Services Tax (GST) and if so, the details thereof since its implementation, State-wise and monthwise;
- b) the details of  GST  reimbursement cess/compensation paid to the State Governments  including  that  becoming  due  to  the  States  as  on  date  from  its inception, State-wise including Maharashtra and year-wise along with the details of GST compensation pending to be paid to each States, month-wise along with the reasons therefor and the time-frame fixed in this regard;
- c) whether it is true that the Union Government has released Rs. 35,298 crore to compensate various States for revenue losses due to implementation of GST for two months for August and September, 2019 and still has to pay compensation for the months of October and November, 2019;
- d) if  so,  the  details  thereof  along  with  the  names  of  such  States  including  Tamil Nadu to which amount has been released including the share/percentage of each State;
- e) whether any timeline has been fixed for the clearance of pending payments to the States  and  continuance  of  such  refunds  to  the  States  in  future  and  if  so,  the details thereof;
- f) whether many States have also been demanding for extending the period of GST compensation paid to the States beyond 2020 and if so, the details thereof and the decision taken in this regard along with the proposal, if any, to increase the GST compensation cess to the States in future;
- g)  whether the collection of revenue under GST has been achieved as estimated at the time of its inception and if so, the details of estimated demand, collection and balance as on date along with the details of arrears of GST collection from any companies/corporates as on date, company/ corporate-wise; and
- h) whether the Government is considering restructuring of GST slabs and rates and new mechanism to handle revenue shortfall and the GST compensation to States and if so, the details thereof?;

## ANSWER

## MINISTER OF STATE IN MINISTRY OF FINANCE (Shri Anurag Singh Thakur)

(a) to (e): As per provisions in Section 7 of the GST (Compensation to States) Act, 2017 loss of revenue to the  States shall  be  calculated  and  compensation  for  loss  of  revenue  to  the  State shall be provisionally calculated and released at the end of every two months' period and shall be finally calculated for every financial year after receipt of final revenue figures as audited by the Comptroller and Auditor General of India, for 5 years. For providing such compensation to the  States,  compensation  cess  is  being  levied  on  certain  luxury  and  demerit  goods  as  per provisions in Section 8 of the GST (Compensation to States) Act, 2017, and compensation cess is  being credited into a non-lapsable Fund known as Goods and Services Tax Compensation Fund which forms part of the Public Account of India. Accordingly, total GST compensation of Rs. 48785.35 cr, Rs. 81141.41 cr and Rs. 81043 cr has been  released to States/ UTs for FY 2017-18, 2018-19 and 2019-20 respectively as per details given in Annexure-I, Annexure-II and Annexure-III.

- (f):  As  per  GST  (Compensation  to  States)  Act,  2017,  the  provisions  for  compensating  loss arising on account of implementation of GST have been made for 5 years till 30 th June, 2022.
- (g) The details of central Goods and Services Tax (GST) revenue collection and Targets (RE) during FY 2017-18, FY 2018-19 and FY 2019-20 till December, 2019 are tabulated below as:-

(Amount in Crore)

| Tax Head          | F.Y 2017-18   | F.Y 2017-18   | F.Y 2018-19   | F.Y 2018-19   | F.Y 2019-20   | F.Y 2019-20                             |
|-------------------|---------------|---------------|---------------|---------------|---------------|-----------------------------------------|
|                   | RE            | Actual        | RE            | Actual        | BE            | Actual [ April- December] (Provisional) |
| CGST              | 221400        | 203261        | 503900        | 457534        | 526000        | 368052                                  |
| IGST              | 161900        | 176688        | 50000         | 28948         | 28000         | 5,423                                   |
| GST ( Comp. Cess) | 61331         | 62612         | 90000         | 95081         | 109343        | 70534                                   |
| Total             | 444631        | 442561        | 643900        | 581563        | 663343        | 444009                                  |

(h):  The  GST  rate  with  regard  to  goods  &  services  is  determined  by  the  GST  council  as  and when required. Presently no such proposal is under consideration with the Government.

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

(Rs. in Crore)

| S. No.   | Nameof State/UT   | GST compensat ion released for July and Aug 2017   | GST compens ation released for Sep and Oct 2017   | GST compens ation released for Nov and Dec 2017   | GST compen sation release d for Jan and Feb 2018   | GST compen sation release d for March 2018   | Final GST compensat ion released for FY - 2017-18   | Total (Rs. In Crore)   |
|----------|-------------------|----------------------------------------------------|---------------------------------------------------|---------------------------------------------------|----------------------------------------------------|----------------------------------------------|-----------------------------------------------------|------------------------|
| (1)      | (2)               | (3)                                                | (4)                                               | (5)                                               | (6)                                                | (7)                                          | (8)                                                 | (9)                    |
| 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                                           | 0.39                                                | 980.39                 |
| 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                                         | 134.59                                              | 7669.59                |
| 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                                          | 84.08                                               | 2348.08                |
| 22       | Puducherry        | 44                                                 | 122                                               | 58                                                | 109                                                | 52                                           | 2.29                                                | 387.29                 |
| 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                                            | 386                                                 | 1018                   |
| 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                                         | 607.35                                              | 48785.35               |

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

(Rs. in Crore)

| S. No.   | Name of State/UT   | GST compensation released for April- May, 2018   | GST compensation released for June- July, 2018   | GST compensation released for Aug- Sept, 2018   | Arrears of GST Compensa tion   | GST compensation released for Oct- Nov, 2018   | GST compensation released for Dec.18- Jan, 2019   | GST compensation released for Feb- March, 2019   | Final GST compensatio n released for FY 2018- 19   | Total    |
|----------|--------------------|--------------------------------------------------|--------------------------------------------------|-------------------------------------------------|--------------------------------|------------------------------------------------|---------------------------------------------------|--------------------------------------------------|----------------------------------------------------|----------|
| (1)      | (2)                | (3)                                              | (4)                                              | (5)                                             | (6)                            | (7)                                            | (8)                                               | (9)                                              |                                                    | (10)     |
| 1        | Andhra Pradesh     | 0                                                | 0                                                | 0                                               | 0                              | 0                                              | 0                                                 | 0                                                |                                                    | 0        |
| 2        | Arunachal Pradesh  | 0                                                | 0                                                | 0                                               | 0                              | 0                                              | 0                                                 | 0                                                |                                                    | 0        |
| 3        | Assam              | 0                                                | 3                                                | 106                                             | 0                              | 86                                             | 177                                               | 83                                               |                                                    | 455      |
| 4        | Bihar              | 325                                              | 633                                              | 498                                             | 0                              | 508                                            | 508                                               | 326                                              |                                                    | 2798     |
| 5        | Chhattisgarh       | 257                                              | 549                                              | 448                                             | 0                              | 388                                            | 513                                               | 437                                              |                                                    | 2592     |
| 6        | Delhi              | 0                                                | 1034                                             | 963                                             | 0                              | 974                                            | 1042                                              | 1172                                             |                                                    | 5185     |
| 7        | Goa                | 28                                               | 150                                              | 107                                             | 0                              | 113                                            | 49                                                | 55                                               |                                                    | 502      |
| 8        | Gujarat            | 174                                              | 1380                                             | 446                                             | 0                              | 2237                                           | 1322                                              | 1668                                             |                                                    | 7227     |
| 9        | Haryana            | 0                                                | 588                                              | 555                                             | 0                              | 882                                            | 533                                               | 1358                                             |                                                    | 3916     |
| 10       | Himachal Pradesh   | 225                                              | 354                                              | 315                                             | 0                              | 330                                            | 293                                               | 418                                              |                                                    | 1935     |
| 11       | J& K               | 147                                              | 415                                              | 292                                             | 0                              | 282                                            | 303                                               | 228                                              |                                                    | 1667     |
| 12       | Jharkhand          | 76                                               | 312                                              | 247                                             | 0                              | 171                                            | 120                                               | 172                                              |                                                    | 1098     |
| 13       | Karnataka          | 792                                              | 2497                                             | 1899                                            | 0                              | 2240                                           | 2037                                              | 3036                                             | -35.86                                             | 12465.14 |
| 14       | Kerala             | 67                                               | 780                                              | 1033                                            | 0                              | 195                                            | 479                                               | 978                                              |                                                    | 3532     |
| 15       | Madhya Pradesh     | 130                                              | 718                                              | 558                                             | 288                            | 560                                            | 455                                               | 593                                              |                                                    | 3302     |
| 16       | Maharashtra        | 0                                                | 1470                                             | 931                                             | 0                              | 2782                                           | 1558                                              | 2622                                             |                                                    | 9363     |
| 17       | Manipur            | 0                                                | 0                                                | 0                                               | 0                              | 0                                              | 0                                                 | 0                                                |                                                    | 0        |
| 18       | Meghalaya          | 0                                                | 14                                               | 11                                              | 0                              | 10                                             | 22                                                | 9                                                |                                                    | 66       |
| 19       | Mizoram            | 0                                                | 0                                                | 0                                               | 0                              | 0                                              | 0                                                 | 0                                                |                                                    | 0        |
| 20       | Nagaland           | 0                                                | 0                                                | 0                                               | 0                              | 0                                              | 0                                                 | 0                                                |                                                    | 0        |
| 21       | Odisha             | 282                                              | 686                                              | 629                                             | 0                              | 791                                            | 757                                               | 640                                              |                                                    | 3785     |
| 22       | Puducherry         | 79                                               | 123                                              | 98                                              | 0                              | 124                                            | 116                                               | 141                                              |                                                    | 681      |
| 23       | Punjab             | 944                                              | 1466                                             | 1306                                            | 0                              | 1454                                           | 1378                                              | 1691                                             |                                                    | 8239     |
| 24       | Rajasthan          | 106                                              | 596                                              | 579                                             | 242                            | 113                                            | 239                                               | 405                                              |                                                    | 2280     |
| 25       | Sikkim             | 0                                                | 0                                                | 0                                               | 0                              | 0                                              | 0                                                 | 0                                                |                                                    | 0        |
| 26       | Tamil Nadu         | 0                                                | 308                                              | 77                                              | 1470                           | 525                                            | 771                                               | 1673                                             |                                                    | 4824     |
| 27       | Telangana          | 0                                                | 0                                                | 0                                               | 0                              | 0                                              | 0                                                 | 0                                                |                                                    | 0        |
| 28       | Tripura            | 2                                                | 41                                               | 32                                              | 0                              | 37                                             | 23                                                | 37                                               |                                                    | 172      |
| 29       | Uttar Pradesh      | 0                                                | 0                                                | 0                                               | 0                              | 0                                              | 0                                                 | 0                                                |                                                    | 0        |
| 30       | Uttarakhand        | 265                                              | 497                                              | 425                                             | 0                              | 338                                            | 363                                               | 554                                              |                                                    | 2442     |
| 31       | West Bengal        | 0                                                | 316                                              | 367                                             | 0                              | 553                                            | 741                                               | 638                                              |                                                    | 2615     |
|          | Total              | 3899                                             | 14930                                            | 11922                                           | 2000                           | 15693                                          | 13799                                             | 18934                                            |                                                    | 81141.14 |

## Details of GST Compensation released to States/UTs for FY 2019-20

(Rs. in Crore)

| S. No.   | Name of State/UT   | GST compensation released for April- May, 2019   | GST compensation released for June- July, 2019   | GST compensation released for Aug - Sept, 2019   | Total   |
|----------|--------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|---------|
| (1)      | (2)                | (3)                                              | (4)                                              | (5)                                              | (6)     |
| 1        | Andhra Pradesh     | 0                                                | 529                                              | 925                                              | 1454    |
| 2        | Arunachal Pradesh  | 0                                                | 0                                                | 0                                                | 0       |
| 3        | Assam              | 34                                               | 239                                              | 412                                              | 685     |
| 4        | Bihar              | 568                                              | 739                                              | 1247                                             | 2554    |
| 5        | Chhattisgarh       | 598                                              | 703                                              | 896                                              | 2197    |
| 6        | Delhi              | 1043                                             | 1525                                             | 2324                                             | 4892    |
| 7        | Goa                | 135                                              | 244                                              | 252                                              | 631     |
| 8        | Gujarat            | 1795                                             | 2203                                             | 2863                                             | 6861    |
| 9        | Haryana            | 917                                              | 1508                                             | 1054                                             | 3479    |
| 10       | Himachal Pradesh   | 359                                              | 419                                              | 463                                              | 1241    |
| 11       | J&K                | 334                                              | 470                                              | 835                                              | 1639    |
| 12       | Jharkhand          | 180                                              | 496                                              | 436                                              | 1112    |
| 13       | Karnataka          | 2459                                             | 3221                                             | 3669                                             | 9349    |
| 14       | Kerala             | 862                                              | 1284                                             | 1597                                             | 3743    |
| 15       | Madhya Pradesh     | 720                                              | 934                                              | 1508                                             | 3162    |
| 16       | Maharashtra        | 1800                                             | 3835                                             | 4406                                             | 10041   |
| 17       | Manipur            | 0                                                | 0                                                | 0                                                | 0       |
| 18       | Meghalaya          | 0                                                | 21                                               | 55                                               | 76      |
| 19       | Mizoram            | 0                                                | 0                                                | 0                                                | 0       |
| 20       | Nagaland           | 0                                                | 0                                                | 0                                                | 0       |
| 21       | Odisha             | 623                                              | 922                                              | 1041                                             | 2586    |
| 22       | Puducherry         | 154                                              | 190                                              | 184                                              | 528     |
| 23       | Punjab             | 1504                                             | 1902                                             | 2228                                             | 5634    |
| 24       | Rajasthan          | 626                                              | 1191                                             | 1558                                             | 3375    |
| 25       | Sikkim             | 0                                                | 0                                                | 0                                                | 0       |
| 26       | Tamil Nadu         | 1574                                             | 1565                                             | 1898                                             | 5037    |
| 27       | Telangana          | 175                                              | 700                                              | 1036                                             | 1911    |
| 28       | Tripura            | 22                                               | 46                                               | 66                                               | 134     |
| 29       | Uttar Pradesh      | 234                                              | 1447                                             | 2408                                             | 4089    |
| 30       | Uttarakhand        | 361                                              | 511                                              | 672                                              | 1544    |
| 31       | West Bengal        | 712                                              | 1112                                             | 1265                                             | 3089    |
|          | Total              | 17789                                            | 27956                                            | 35298                                            | 81043   |