Lok Sabha Question No. 32 (UNSTARRED), answered on 2020-09-14
Subject: GST Compensation
Ministry: FINANCE
Asked by: Bhola Singh, Raja Amareshwara Naik, Sangeeta Kumari Singh Deo, Su Thirunavukkarasar, Vinod Kumar Sonkar, K. Muraleedharan, Jayanta Kumar Roy, Sukanta Majumdar, Uttam Kumar Nalamada Reddy, Kanimozhi Karunanidhi

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION NO. 32 TO BE ANSWERED ON MONDAY, THE 14 TH  SEPTEMBER, 2020 BHADRAPADA 23, 1942 (SAKA)

## GST COMPENSATION

- 32: Shri  Bhola  Singh,  Shri  Raja  Amareshwara  Naik,  Shrimata  Sangeeta Kumar  Singh  Deo,  Shir  Thirunavukkarasar  SU,  Shri  Vinod  Kumar Sonkar,  Shri  K.  Muraleedharan,  Dr.  Jayanta  Kumar  Roy,  Dr.  Sukanta Majumdar,  Shri  Uttam  Kumar  Reddy  Nalamada,  Shrimati  Kanimozhi Karunanidhi:

Will the Minister of FINANCE be pleased to state:

- a)  whether  there  is  a  shortfall  in  revenue  collection  including  Goods  and Services Tax (GST) collection due to lockdown in the country;
- b) if  so,  the  details  thereof  along  with  the  details  of  the  proposal  of  financial package to the States for meeting revenue shortfall in GST;
- c) whether the GST Council has met recently and if so, the details thereof along with the decision taken therein;
- d)  whether  the  Government  has  provided  GST  compensation  to  the  States including Karnataka and Kerala;
- e)  if  so,  the  details  of  GST  compensation  paid  as  well  as  pending  GST Compensation  dues  to  different  States  during  the  last  two  years  and  the current year, State-wise and the reasons for not paying these dues;
- f) whether the Government has any plan to resolve the issue of pending GST compensation cess to the States; and
- g)  if  so, the steps being taken by the Government in this regard along with the time by which GST compensation dues are likely to be cleared and if not, the reasons therefor?

## ANSWER MINISTER OF STATE IN MINISTRY OF FINANCE

## (Shri Anurag Singh Thakur)

(a) & (b): The month-wise gross Goods and Services Tax collection for FY 2018-19, 2019-20 and FY 2020-21 (till August, 2020) are as under:

(in Rs. Corore)

| Month     |   2018-19 |   2019-20 | 2020-21 (till Aug,20)   |
|-----------|-----------|-----------|-------------------------|
| April     |    103459 |    113865 | 32174                   |
| May       |     94016 |    100289 | 62151                   |
| June      |     95610 |     99939 | 90917                   |
| July      |     96483 |    102082 | 87422                   |
| August    |     93960 |     98202 | 86499                   |
| September |     94442 |     91916 |                         |
| October   |    100710 |     95379 |                         |
| November  |     97637 |    103491 |                         |
| December  |     94726 |    103184 |                         |
| January   |    102503 |    110818 |                         |
| February  |     97247 |    105361 |                         |
| March     |    106577 |     97590 |                         |
| Total     |   1177368 |   1221604 | 359163                  |
| Average   |     98114 |    101843 | 71833                   |

The average gross GST collection in the FY 2020-21 has shown declining trend as compared to the previous Financial Year. This may be attributed to the COVID Pandemic induced Lockdown and  relief  measures  extended  to  the  taxpayers  by  the  Government  by  way  of  waiving  the interest, late fee and extending the return filing dates.

(c) to (g): As per provisions in Section 7 of the GST (Compensation to States) Act, 2017 loss of revenue to the States shall be calculated and released at the end of every two months' period, for  5  years.  Accordingly,  admissible  GST  compensation  for  the  period  April,  2019  to  March, 2020 has been released to all States/ UTs including Karnataka and Kerala. Due to short GST Compensation Cess collection in the current financial year, GST compensation is yet to be paid for the period April-July, 2020, as per details in Annexure.

Accordingly, issue of pending GST compensation and future course of action to meet the  GST  compensation  shortfall  has  been  discussed  in  41st  GST  Council  meeting  on

27.08.2020 wherein States were given two options to meet their GST compensation shortfall for current FY from market borrowing.

It  was  also  decided  that  States  will  give  their  preference  views  thereon.  Thereafter  on finalization of scheme, the states can chose either Option 1 or Option 2 and accordingly, their compensation, borrowing, repayment etc will be dealt as per their individual choice.

****

Annexure Details of GST Compensation

(Rs. in crore)

| S.No   | Nameof State/UT   | GST Compensation released for FY 2019-20   | Provisional GST Compensation due for FY 2020-21   |
|--------|-------------------|--------------------------------------------|---------------------------------------------------|
| (1)    | (2)               | (5)                                        | (6)                                               |
| 1      | Andhra Pradesh    | 3028                                       | 4627                                              |
| 2      | Arunachal Pradesh | 0                                          | 0                                                 |
| 3      | Assam             | 1284                                       | 2149                                              |
| 4      | Bihar             | 5464                                       | 4493                                              |
| 5      | Chattisgarh       | 4521                                       | 2827                                              |
| 6      | Delhi             | 8424                                       | 6931                                              |
| 7      | Goa               | 1093                                       | 987                                               |
| 8      | Gujarat           | 14801                                      | 11563                                             |
| 9      | Haryana           | 6617                                       | 5841                                              |
| 10     | Himachal Pradesh  | 2477                                       | 1623                                              |
| 11     | J&K               | 3281                                       | 2104                                              |
| 12     | Jharkhand         | 2219                                       | 2475                                              |
| 13     | Karnataka         | 18628                                      | 13763                                             |
| 14     | Kerala            | 8111                                       | 7077                                              |
| 15     | Madhya Pradesh    | 6538                                       | 5863                                              |
| 16     | Maharashtra       | 19233                                      | 22485                                             |
| 17     | Manipur           | 0                                          | 53                                                |
| 18     | Meghalaya         | 157                                        | 255                                               |
| 19     | Mizoram           | 0                                          | 6                                                 |
| 20     | Nagaland          | 0                                          | 27                                                |
| 21     | Odisha            | 5122                                       | 3633                                              |
| 22     | Puducherry        | 1057                                       | 564                                               |
| 23     | Punjab            | 12187                                      | 6959                                              |
| 24     | Rajasthan         | 6710                                       | 6312                                              |
| 25     | Sikkim            | 0                                          | 69                                                |
| 26     | Tamil Nadu        | 12305                                      | 11269                                             |
| 27     | Telangana         | 3054                                       | 5424                                              |
| 28     | Tripura           | 293                                        | 259                                               |
| 29     | Uttar Pradesh     | 9123                                       | 11742                                             |
| 30     | Uttarakhand       | 3375                                       | 2235                                              |
| 31     | West Bengal       | 6200                                       | 7750                                              |
|        | Total             | 165302.00                                  | 151365.00                                         |