Lok Sabha Question No. 2481 (UNSTARRED), answered on 2021-12-13
Subject: Payment of GST Arrears
Ministry: FINANCE
Asked by: Dinesh Chandra Yadav, Kaushalendra Kumar, Rajiv Ranjan (Lalan) Singh

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UN-STARRED QUESTION NO-2481

## TO BE ANSWERED ON MONDAY, THE 13 TH  DECEMBER, 2021 Agrahayana 22, 1943 (Saka)

## Payment of GST Arrears

## 2481. SHRI DINESH CHANDRA YADAV: SHRI KAUSHALENDRA KUMAR: SHRI RAJIV RANJAN SINGH ALIAS LALAN SINGH :

Will the Minister of FINANCE be pleased to state:

(a) whether the Goods and Service Tax (GST) dues are not being paid to the States as per their entitlement and if so, the details thereof;

(b) the names of states which are yet to receive their share of GST from the Union Government along with the amount to be paid to the States, State-wise;

(c) whether  it  is  not  a  fact  that  the  States  have  to  face  severe  constraints  in  undertaking development works due to undue delay in payment of GST arreas and if so, the reaction of the Government thereto;

(d) whether the payment of GST arrears to the States is under consideration of the Government; and

- (e) if so, the time by which payment of GST arrears is to be made?

## ANSWER

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

(a) to (e)  As per provisions of GST (Compensation to States) Act, 2017, GST compensation for financial  years  2017-18,  2018-19  and  2019-20  has  already  been  paid  to  all  the  States/UTs. However, 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. 1,30,464 crore has been released to 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.

The issue of shortfall of cess collection into Compensation Fund and GST compensation to States/UTs due to economic impact of the pandemic has been deliberated in 41st, 42nd & 43rd GST council meetings. As per the decision of GST Council, Rs. 1.1 lakh crore for FY 2020-21 &  Rs. 1.59 lakh crore for FY 2021-22 has been released to States/ UTs as back to back loan to meet the resource gap of the States/UTs due to shortfall in GST compensation. Release of this amount has been front loaded during the financial year to enable States/UTs to undertake capital expenditure. 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. Taking into  account,  the  GST  compensation  released  from  Compensation  Fund  as  well  as  back-to-back loan  released  in  FY  2020-21  and  FY  2021-22,  GST  compensation  of  ₹  37,134  crore  for  period April'20 to March'21 and  ₹ 14,664 crore for April-September'21 is pending to States/ UTs as per provisional figures. The detail of GST compensation due to States/ UTs for FY 2020-21 and for period  April'21  to  September'21  is  as  per  Annexure.  Centre  is  committed  to  release  full  GST Compensation to the States/UTs as per GST (Compensation to States) Act, 2017 for the transition period  by  extending  the  levy  of  Compensation  cess  beyond  5  years  to  meet  the  GST  revenue shortfall as well as servicing the loan borrowed through special window scheme. As far as States' share of Central portion of GST is concerned, it is being released regularly.

****

Annexure

(in Rs. Crore)

| S. No.   | Name of State/UT   | Provisional GST compensation yet to be released for FY 2020-21   | Provisional GST compensation yet to be released for FY 2021-22 (April-Sept)   |
|----------|--------------------|------------------------------------------------------------------|-------------------------------------------------------------------------------|
| (1)      | (2)                | (3)                                                              | (4)                                                                           |
| 1        | Andhra Pradesh     | 1195                                                             | 387                                                                           |
| 2        | Arunachal Pradesh  | 0                                                                | 0                                                                             |
| 3        | Assam              | 351                                                              | 79                                                                            |
| 4        | Bihar              | 754                                                              | 0                                                                             |
| 5        | Chhattisgarh       | 309                                                              | 0                                                                             |
| 6        | Delhi              | 2543                                                             | 2104                                                                          |
| 7        | Goa                | 360                                                              | 394                                                                           |
| 8        | Gujarat            | 3145                                                             | 0                                                                             |
| 9        | Haryana            | 1141                                                             | 0                                                                             |
| 10       | Himachal Pradesh   | 391                                                              | 0                                                                             |
| 11       | J&K                | 371                                                              | 0                                                                             |
| 12       | Jharkhand          | 582                                                              | 87                                                                            |
| 13       | Karnataka          | 3528                                                             | 0                                                                             |
| 14       | Kerala             | 1484                                                             | 0                                                                             |
| 15       | Madhya Pradesh     | 1194                                                             | 0                                                                             |
| 16       | Maharashtra        | 6723                                                             | 6430                                                                          |
| 17       | Manipur            | 0                                                                | 0                                                                             |
| 18       | Meghalaya          | 61                                                               | 61                                                                            |
| 19       | Mizoram            | 0                                                                | 0                                                                             |
| 20       | Nagaland           | 0                                                                | 0                                                                             |
| 21       | Odisha             | 630                                                              | 0                                                                             |
| 22       | Puducherry         | 134                                                              | 0                                                                             |
| 23       | Punjab             | 1838                                                             | 0                                                                             |
| 24       | Rajasthan          | 1439                                                             | 0                                                                             |
| 25       | Sikkim             | 1                                                                | 0                                                                             |
| 26       | Tamil Nadu         | 2894                                                             | 2049                                                                          |
| 27       | Telangana          | 615                                                              | 0                                                                             |
| 28       | Tripura            | 37                                                               | 0                                                                             |
| 29       | Uttar Pradesh      | 3120                                                             | 2321                                                                          |
| 30       | Uttarakhand        | 595                                                              | 0                                                                             |
| 31       | West Bengal        | 1699                                                             | 751                                                                           |
|          | Total              | 37134                                                            | 14664                                                                         |