Lok Sabha Question No. 975 (UNSTARRED), answered on 2021-02-08
Subject: Pending GST Compensation Dues
Ministry: FINANCE
Asked by: Kanimozhi Karunanidhi

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA

## UN-STARRED QUESTION NO- 975 ANSWERED ON-08/02/2021

## PENDING GST COMPENSATION DUES

## 975. SHRIMATI KANIMOZHI KARUNANIDHI

Will the Minister of FINANCE be pleased to state:

- (a) the  details  of  pending  dues  of  Goods  and  Services  Tax  (GST)  compensation  amount  to  the states having revenue shortfall due to the introduction of GST, State-wise; and
- (b) the amount of GST compensation paid to the states since the implementation of GST regime, State-wise?

## ANSWER

## MINISTER OF STATE IN MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

(a): 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  FY  2017-18,  2018-19  and  2019-20  has  been released to all States/ UTs (w.e.f. 01.07.2017). Further, GST compensation of Rs. 40,000 crore has been released to all States/ UTs to meet partly the bi-monthly compensation for period April-May, 2020 as GST Compensation Fund was not adequate to meet the full compensation for period AprilMay, 2020. The balance GST  Compensation for the period April-May, 2020 and  GST Compensation for the full period June-November'20 is pending to all States/UTs due to inadequate amount in GST Compensation Fund during current Financial Year.

In  order  to  meet  the  shortfall  in  GST  Compensation  to  be  paid  to  States,  under  the  special window, Rs.1.1 lakh crore will be borrowed by Government of India in appropriate tranches. The amount so borrowed will be passed on the States as loan on back-to-back basis to help the States to meet  the  resource  gap  due  to  non-release  of  compensation  due  to  inadequate  balance  in  the Compensation Fund. As per this decision, Central Government has released 14 installments of Rs. 6000  crore  each  to  the  States  as  per  Annexure-I.  All  States  have  decided  to  take  benefit  of  this assistance to tide over the temporary resource gap. The states will be paid full GST Compensation 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. The details of pending GST compensation to States/UTs for period April-Nov, 2020 is as per Annexure-II.

(b):  The  details  of  GST  compensation  released  to  States/  UTs  since  the  implementation  of  GST regime is as per Annexure-II.

## Details of payment of back to back loan in lieu of GST Compensation Shortfall

(Rs. in crore)

| Name of State/UT   |   Amount released under Special borrowing scheme (as on 01.02.2021) |
|--------------------|---------------------------------------------------------------------|
| Andhra Pradesh     |                                                             1936.53 |
| Arunachal Pradesh  |                                                                0    |
| Assam              |                                                              833.2  |
| Bihar              |                                                             3271.94 |
| Chhattisgarh       |                                                             1523.34 |
| Goa                |                                                              703.77 |
| Gujarat            |                                                             7727.43 |
| Haryana            |                                                             3646.77 |
| Himachal Pradesh   |                                                             1438.79 |
| Jharkhand          |                                                              827.55 |
| Karnataka          |                                                            10396.5  |
| Kerala             |                                                             3153.48 |
| Madhya Pradesh     |                                                             3806.03 |
| Maharashtra        |                                                            10036.5  |
| Manipur            |                                                                0    |
| Meghalaya          |                                                               93.79 |
| Mizoram            |                                                                0    |
| Nagaland           |                                                                0    |
| Odisha             |                                                             3202.69 |
| Punjab             |                                                             4571.52 |
| Rajasthan          |                                                             3162.97 |
| Sikkim             |                                                                0    |
| Tamil Nadu         |                                                             5229.92 |
| Telangana          |                                                             1466.01 |
| Tripura            |                                                              189.6  |
| Uttar Pradesh      |                                                             5033.57 |
| Uttarakhand        |                                                             1940.91 |
| West Bengal        |                                                             2423.29 |
| UT of Delhi        |                                                             4914.56 |
| UT of J&K          |                                                             1903.74 |
| UT of Puducherry   |                                                              565.54 |
| Total              |                                                            84000    |

## Details  of  GST  compensation  pending  for  period  April-November'2020  and GST Compensation released from July, 2017 to till date

(Rs. in crore)

| S.No   | Name of State/UT   | Provisional Compensation due 2020-21 (Apl-Nov)   | GST for FY                                     | GST compensation released from July, 2017 till date #   |
|--------|--------------------|--------------------------------------------------|------------------------------------------------|---------------------------------------------------------|
| (1)    | (2)                | (3)                                              | (3)                                            | (4)                                                     |
| 1      | Andhra Pradesh     | 5269                                             | 5269                                           | 5008                                                    |
| 2      | Arunachal Pradesh  | 0                                                | 0                                              | 21                                                      |
| 3      | Assam              | 2413                                             | 2413                                           | 3293                                                    |
| 4      | Bihar              | 5724                                             | 5724                                           | 12678                                                   |
| 5      | Chhattisgarh       | 4312                                             | 4312                                           | 9402                                                    |
| 6      | Delhi              | 10950                                            | 10950                                          | 15549                                                   |
| 7      | Goa                | 1621                                             | 1621                                           | 2114                                                    |
| 8      | Gujarat            | 17094                                            | 17094                                          | 29243                                                   |
| 9      | Haryana            | 6953                                             | 6953                                           | 13518                                                   |
| 10     | Himachal Pradesh   | 2231                                             | 2231                                           | 5878                                                    |
| 11     | J&K                | 2751                                             | 2751                                           | 6631                                                    |
| 12     | Jharkhand          | 3242                                             | 3242                                           | 5323                                                    |
| 13     | Karnataka          | 19504                                            | 19504                                          | 42316                                                   |
| 14     | Kerala             | 9497                                             | 9497                                           | 15574                                                   |
| 15     | Madhya Pradesh     | 7589                                             | 7589                                           | 14093                                                   |
| 16     | Maharashtra        | 31892                                            | 31892                                          | 37813                                                   |
| 17     | Manipur            | 0                                                | 0                                              | 46                                                      |
| 18     | Meghalaya          | 316                                              | 316                                            | 428                                                     |
| 19     | Mizoram            | 886 8066 15475 6017 334 15220 3356 9625 206461   | 886 8066 15475 6017 334 15220 3356 9625 206461 | 11                                                      |
| 20     | Nagaland           | 0                                                | 0                                              | 14                                                      |
| 21     | Odisha             | 5329                                             | 5329                                           | 12704                                                   |
| 22     | Puducherry         |                                                  |                                                | 2254                                                    |
| 23     | Punjab             | 10747                                            | 10747                                          | 27957                                                   |
| 24     | Rajasthan          |                                                  |                                                | 13670                                                   |
| 25     | Sikkim             | 48                                               | 48                                             | 29                                                      |
| 26     | Tamil Nadu         |                                                  |                                                | 21115                                                   |
| 27     | Telangana          |                                                  |                                                | 4765                                                    |
| 28     | Tripura            |                                                  |                                                | 684                                                     |
| 29     | Uttar Pradesh      |                                                  |                                                | 14841                                                   |
| 30     | Uttarakhand        |                                                  |                                                | 7776                                                    |
| 31     | West Bengal        |                                                  |                                                | 12411                                                   |
|        | Total              |                                                  |                                                | 337159                                                  |

# Includes Rs. 33,412 crore of compensation released in 2017-18 that was later adjusted against IGST apportionment pertaining to the same year.