Lok Sabha Question No. 207 (UNSTARRED), answered on 2021-07-19
Subject: GST Compensation
Ministry: FINANCE
Asked by: Gaddam Ranjith Reddy, Jayadev Galla, K. Muraleedharan, Andimuthu Raja

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA

## UN-STARRED QUESTION NO- 207 ANSWERED ON-19/07/2021

## GST COMPENSATION

207: DR. G. RANJITH REDDY:

- :SHRI JAYADEV GALLA:

- :SHRI K. MURALEEDHARAN:

- :SHRI A. RAJA:

Will the Minister of FINANCE be pleased to state:

- (a) the details of the amount of GST Compensation dues pending to various States for the financial years 2020-21 and 2021-22, State-wise including Telangana and Andhra Pradesh;
- (b) whether the Government has paid all the dues to the States during the said period and if so, the details thereof, State-wise and if not, the reasons therefor along with the details of alternative mechanism worked out in this regard and the time by which the dues would be paid;
- (c) whether various States including Tamil Nadu have requested for generous fiscal support in view of  medical  healthcare  expenses  and  if  so,  the  details  thereof  along  with  the  response  of  the Government in this regard;
- (d) whether there are any plans to provide additional GST compensation to the States which have suffered huge economic loss due to Covid-19 pandemic and if so, the details thereof and if not, the reasons therefor; and
- (e) the details of GST Collections received by the Government since March 2020, month-wise?

## ANSWER

## MINISTER OF STATE IN MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a)  to  (d):  The  GST  compensation  cess  levied  under  Section  8  of  the  GST  (Compensation  to States)  Act,  2017  is  transferred  into  a  non-lapsable  Fund  known  as  GST  Compensation  Fund which forms part of the Public Account of India as provided in Section 10(1) of the act. The States are being compensated for any loss of revenue arising on account of implementation of GST for five years out of the Compensation Fund as per Section 10(2) of the said Act. GST compensation for  financial  years  2017-18,  2018-19  and  2019-20  has  already  been  paid  to  the  states.  The economic impact of the pandemic has led to higher compensation requirement due to lower GST collection and at the same time lower collection of GST compensation cess. GST compensation of Rs. 91,000 crore has been released to all States/ UTs to partly meet the compensation payable for the period April'20 to March'21 as the amount in GST Compensation Fund was not adequate to meet the full compensation requirement. Details of GST compensation yet to be released to each State is as per Annexure.

Few States have requested for payment of GST Compensation to States on account of loss of revenue due to implementation of GST as per GST (Compensation to States) Act, 2017 and in addition the general request from the States are like revision of FRBM limit, additional fund for procurement of medical equipment and increasing the devolution grant etc. Central Government has considered various such requests and is committed to provide all possible assistance to States.

The  issue  of  GST  Compensation  to  States  has  been  deliberated  in  the  41st  and  42nd  GST Council meetings. Accordingly, FY 20-21, Centre had borrowed Rs. 1.1 lakh crore under a special window and passed on to the States as back-to-back loan to help the States meet the resource gap due to short-release of compensation on account of inadequate balance in the Compensation Fund. Subsequent to deliberations in the 43rd GST Council meeting, it has been decided that the Centre is borrowing Rs. 1.59 lakh crores from the market through special window in current FY and passing it on to the States/ UTs as a back to back loan in appropriate tranches as was done in last year. As per  this  decision  Rs.  75000  crore  has  been  released  to  States/  UTs  on  15.07.2021.  In  addition, depending on the amount available in the Compensation Fund, Centre has also been releasing the regular GST compensation to States to make up for GST revenue shortfall.

- (e):  The  details  of  gross  GST  collection  (SGST+CGST+IGST+GST  Compensation  Cess)  presettlement since March 2020, month-wise, are as under:

|           | Gross GST Collection (in Rs. Crores)   | Gross GST Collection (in Rs. Crores)   | Gross GST Collection (in Rs. Crores)   |
|-----------|----------------------------------------|----------------------------------------|----------------------------------------|
| Month     | 2019-20                                | 2020-21                                | 2021-22                                |
| April     |                                        | 32172                                  | 139708                                 |
| May       |                                        | 62151                                  | 102709                                 |
| June      |                                        | 90918                                  | 92849                                  |
| July      |                                        | 87422                                  |                                        |
| August    |                                        | 86449                                  |                                        |
| September |                                        | 95480                                  |                                        |
| October   |                                        | 105155                                 |                                        |
| November  |                                        | 104963                                 |                                        |
| December  |                                        | 115174                                 |                                        |
| January   |                                        | 119875                                 |                                        |
| February  |                                        | 113143                                 |                                        |
| March     | 97590                                  | 123902                                 |                                        |

*****

## Provisional GST compensation yet to be released to States/ UTs

(Rs. in crore)

| S.No   | Nameof State/UT   | Pending GST compensation for period April'20-March'21   | Pending GST compensation for period April-May, 21   |
|--------|-------------------|---------------------------------------------------------|-----------------------------------------------------|
| (1)    | (2)               | (3)                                                     | (4)                                                 |
| 1      | Andhra Pradesh    | 2493                                                    | 1559                                                |
| 2      | Arunachal Pradesh | 0                                                       | 0                                                   |
| 3      | Assam             | 1017                                                    | 606                                                 |
| 4      | Bihar             | 1538                                                    | 1801                                                |
| 5      | Chhattisgarh      | 1231                                                    | 1547                                                |
| 6      | Delhi             | 5190                                                    | 2823                                                |
| 7      | Goa               | 734                                                     | 411                                                 |
| 8      | Gujarat           | 6583                                                    | 3603                                                |
| 9      | Haryana           | 2328                                                    | 2130                                                |
| 10     | Himachal Pradesh  | 680                                                     | 714                                                 |
| 11     | J&K               | 757                                                     | 829                                                 |
| 12     | Jharkhand         | 1241                                                    | 969                                                 |
| 13     | Karnataka         | 7202                                                    | 5500                                                |
| 14     | Kerala            | 3046                                                    | 2812                                                |
| 15     | Madhya Pradesh    | 2437                                                    | 2468                                                |
| 16     | Maharashtra       | 15138                                                   | 7995                                                |
| 17     | Manipur           | 0                                                       | 0                                                   |
| 18     | Meghalaya         | 140                                                     | 79                                                  |
| 19     | Mizoram           | 0                                                       | 0                                                   |
| 20     | Nagaland          | 0                                                       | 0                                                   |
| 21     | Odisha            | 1389                                                    | 1349                                                |
| 22     | Puducherry        | 274                                                     | 288                                                 |
| 23     | Punjab            | 3752                                                    | 3124                                                |
| 24     | Rajasthan         | 2981                                                    | 2361                                                |
| 25     | Sikkim            | 30                                                      | 0                                                   |
| 26     | Tamil Nadu        | 6155                                                    | 3574                                                |
| 27     | Telangana         | 2515                                                    | 1558                                                |
| 28     | Tripura           | 93                                                      | 88                                                  |
| 29     | Uttar Pradesh     | 7109                                                    | 4048                                                |
| 30     | Uttarakhand       | 1215                                                    | 951                                                 |
| 31     | West Bengal       | 3911                                                    | 2157                                                |
|        | Total             | 81179                                                   | 55345                                               |