Lok Sabha Question No. 61 (STARRED), answered on 2022-12-12
Subject: GST Collection
Ministry: FINANCE
Asked by: Nakul K. Nath

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA STARRED QUESTION NO-61

## TO BE ANSWERED ON MONDAY, THE 12 TH  DECEMBER, 2022

## GST COLLECTION

61. SHRI NAKUL KAMAL NATH:

Will the Minister of FINANCE be pleased to state:

(a) the collection of the Goods and Services Tax (GST) from the State of Madhya Pradesh (MP) during each of the last four years;

(b)  the  amount  of  the  GST  compensation  released  by  the  Government  to  the  State  of Madhya Pradesh during the same period;

(c) the amount of GST compensation due to the Government of Madhya Pradesh from the Central Government; and

(d) whether the GST Council intends to consider the demand of the State Government of Madhya Pradesh to increase the GST compensation for an additional five years and if so, the details thereof?

## ANSWER

THE MINISTER OF FINANCE (MS. NIRMALA SITHARAMAN)

- (a) to (d):  A statement is laid on the Table of the House.

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## STATEMENT REFERRED IN REPLY TO LOK SABHA STARRED QUESTION NO. 61 FOR ANSWER ON 12 TH  DECEMBER, 2022

(a):- The details of GST collected from the State of Madhya Pradesh during the last four years is given below: -

(in Rs. Crore)

|       | Financial Year   | Financial Year   | Financial Year   | Financial Year   |
|-------|------------------|------------------|------------------|------------------|
| Head  | 2018-19          | 2019-20          | 2020-21          | 2021-22          |
| CGST  | 5,719            | 6,413            | 6,309            | 7,280            |
| SGST  | 8,033            | 8,841            | 8,225            | 9,433            |
| IGST  | 6,992            | 7,575            | 6,942            | 8,261            |
| CESS  | 4,939            | 5,526            | 5,530            | 6,280            |
| TOTAL | 25,683           | 28,354           | 27,005           | 31,255           |

(b) & (c):- As per provision of GST (Compensation to States) Act, 2017 and taking into account ₹ 1.10 lakh crore for FY 2020-21 and ₹ 1.59 lakh crore for FY 2021-22 released to States/UTs as back to back loan in lieu of GST compensation, entire GST compensation dues of  States/UTs  including  State  of  Madhya  Pradesh  has been cleared by Central Government for period up to 31.05.2022. This decision was taken despite the fact that only about ₹ 25,000 crore was available in the GST Compensation Fund. The balance around Rs. 62,000 crore was released by the Centre  from  its  own  resources  pending  collection  of  Cess.  On  the  same  line, Centre has also released ₹ 17,000 crore to States on 24.11.2022 from Consolidated Fund of India against the pending GST compensation for the period April-June'2022 despite the short compensation cess collection into compensation Fund to  assist  the  States  in  managing  their  resources.  Year-wise  detail  of  GST compensation released to Madhya Pradesh is as under:-

| GST Compensation released to MP for the year (Rs. in crore)   | GST Compensation released to MP for the year (Rs. in crore)   | GST Compensation released to MP for the year (Rs. in crore)   | GST Compensation released to MP for the year (Rs. in crore)   | GST Compensation released to MP for the year (Rs. in crore)   | GST Compensation released to MP for the year (Rs. in crore)   | GST Compensation released to MP for the year (Rs. in crore)   | GST Compensation released to MP for the year (Rs. in crore)   |
|---------------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------|
| FY                                                            | 2017-18                                                       | 2018-19                                                       | 2019-20                                                       | 2020-21                                                       | 2021-22                                                       | 2022- 23                                                      | Total                                                         |
| GST Compensation                                              | 2668                                                          | 3302                                                          | 6538                                                          | 5788                                                          | 1946                                                          | 1896                                                          | 22138                                                         |

Taking into account back to back loan of ₹ 4542 crore in FY 2020-21 and ₹ 7011 crore  in  FY  2021-22  released  to  Madhya  Pradesh  in  lieu  of  GST  compensation and  release  of  bimonthly  GST  compensation  from  July,  2017  to  June,  2022,  ₹ 729.64  crore  is  due  to  Madhya  Pradesh  toward  GST  compensation  for  period April-June, 2022.

(d):-  As per section 18 of the Constitution (One Hundred and First Amendment) Act,  2016,  Parliament  shall,  by  law,  on  the  recommendation  of  the  Goods  and Services Tax Council, provide for compensation to the States for loss of revenue arising on account of implementation of the goods and services tax for a period of five years. Central Government is committed for payment of GST compensation to States/UTs for five years as per Constitutional provision.

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