Lok Sabha Question No. 5137 (UNSTARRED), answered on 2022-04-04
Subject: GST Discrepancies
Ministry: FINANCE
Asked by: Geeta Kora, Navneet Ravi Rana, Dileshwar Kamait

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION NO-5137

TO BE ANSWERED ON MONDAY, THE 4th   APRIL, 2022

## GST DISCREPANCIES

5137.  SHRIMATI GEETA KORA: SHRIMATI NAVNEET RAVI RANA: SHRI DILESHWAR KAMAIT:

Will the Minister of FINANCE be pleased to state:-

(a) the details of Goods and Services Tax(GST) arrears payable to the States including Jharkhand, Bihar and Maharashtra during the last three years, State/year-wise;

(b)  whether  any  discrepancies  have  been  found  in  the  arrears  of  GST  payable  to  the States and the amount actually paid to them; and

(c) if so, the details thereof along with the reasons therefor?

## ANSWER

THE MINISTER OF STATE IN MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY) (a):- As per Section 7(2) of the Goods and Services Tax (Compensation to States) Act, 2017,  the  compensation  payable  to  a  State  shall  be  provisionally  calculated  and released  at  the  end  of  every  two  months  period,  and  shall  be  finally  calculated  for every  financial  year  after  the  receipt  of  final  revenue  figures,  as  audited  by  the

Comptroller and Auditor-General of India.

Taking into account back to back loan amount of Rs.1.10 lakh crore released to States in FY 2020-21 in lieu of GST compensation, entire admissible provisional GST compensation has already been released to the States for the financial years 2017-18, 2018-19,  2019-20  and  2020-21.  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.  Accordingly,  Centre  borrowed  Rs.1.59 lakh  crore  through  special  window  and  released  as  back  to  back  loan  to  States  to meet the compensation shortfall in the FY 2021-22.

Further, after taking into account the GST compensation released from Compensation Fund as well as back-to-back loan released in FY 2021-22, details of provisional GST compensation  pending  to  States  for  period  April,  2021  to  January,  2022  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. Apportionment of IGST to States and payment of States' share in CGST has been fully done. (b) to (c):-No Sir. Final GST Compensation due to States is calculated on the basis of the revenue figures certified by the Accountant General of the concerned State. Many States  including  Jharkhand,  Bihar  and  Maharashtra  have  not  submitted  the  AG's certified revenue figures since implementation of GST and therefore, Centre released only provisional admissible GST compensation to the States who have not submitted the AG's certified revenue figures.

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## Details of GST compensation released/pending for FY 2021-22

(in Rs. Crore)

| S. No.   | Name of State/UT   | GST compensation released during the FY 2021-22   | Back to back loan released in FY 2021-22   | Provisional GST compensation yet to be released for FY 2021-22   |
|----------|--------------------|---------------------------------------------------|--------------------------------------------|------------------------------------------------------------------|
| (1)      | (2)                | (3)                                               | (4)                                        | (5)                                                              |
| 1        | Andhra Pradesh     | 3117                                              | 3272                                       | 1524                                                             |
| 2        | Arunachal Pradesh  | 0                                                 | 0                                          | 0                                                                |
| 3        | Assam              | 1014                                              | 1774                                       | 549                                                              |
| 4        | Bihar              | 1945                                              | 6816                                       | 439                                                              |
| 5        | Chhattisgarh       | 1217                                              | 4965                                       | 722                                                              |
| 6        | Delhi              | 6446                                              | 6193                                       | 5461                                                             |
| 7        | Goa                | 911                                               | 847                                        | 832                                                              |
| 8        | Gujarat            | 8207                                              | 13040                                      | 1062                                                             |
| 9        | Haryana            | 2909                                              | 7394                                       | 0                                                                |
| 10       | Himachal Pradesh   | 1168                                              | 2695                                       | 109                                                              |
| 11       | J&K                | 893                                               | 3845                                       | 0                                                                |
| 12       | Jharkhand          | 1526                                              | 2484                                       | 1268                                                             |
| 13       | Karnataka          | 8976                                              | 18109                                      | 3914                                                             |
| 14       | Kerala             | 3856                                              | 8739                                       | 2629                                                             |
| 15       | Madhya Pradesh     | 3095                                              | 7011                                       | 2199                                                             |
| 16       | Maharashtra        | 17834                                             | 13782                                      | 11563                                                            |
| 17       | Manipur            | 0                                                 | 0                                          | 0                                                                |
| 18       | Meghalaya          | 163                                               | 141                                        | 98                                                               |
| 19       | Mizoram            | 0                                                 | 0                                          | 0                                                                |
| 20       | Nagaland           | 0                                                 | 0                                          | 0                                                                |
| 21       | Odisha             | 2465                                              | 6430                                       | 0                                                                |
| 22       | Puducherry         | 329                                               | 1096                                       | 120                                                              |
| 23       | Punjab             | 4442                                              | 12132                                      | 1500                                                             |
| 24       | Rajasthan          | 3746                                              | 7268                                       | 625                                                              |
| 25       | Sikkim             | 9                                                 | 0                                          | 0                                                                |
| 26       | Tamil Nadu         | 6697                                              | 8095                                       | 6672                                                             |
| 27       | Telangana          | 2006                                              | 4569                                       | 308                                                              |
| 28       | Tripura            | 101                                               | 401                                        | 0                                                                |
| 29       | Uttar Pradesh      | 8299                                              | 8140                                       | 6954                                                             |
| 30       | Uttarakhand        | 1475                                              | 3333                                       | 708                                                              |
| 31       | West Bengal        | 4531                                              | 6425                                       | 4231                                                             |
|          | Total              | 97379                                             | 159000                                     | 53489                                                            |