Lok Sabha Question No. 23 (UNSTARRED), answered on 2022-07-18
Subject: Meeting of GST Council
Ministry: FINANCE
Asked by: Raja Amareshwara Naik, Sougata Ray, Bhola Singh, Rajveer (Raju Bhaiya) Singh, Vinod Kumar Sonkar, Sukanta Majumdar, Sangeeta Kumari Singh Deo, S. Venkatesan, Jayanta Kumar Roy, Pocha Brahmananda Reddy

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA

## UNSTARRED QUESTION NO-23

TO BE ANSWERED ON MONDAY, THE 18 TH  JULY, 2022

## MEETING OF GST COUNCIL

23.  SHRI RAJA AMARESHWARA NAIK: PROF. SOUGATA RAY: SHRI BHOLA SINGH: SHRI RAJVEER SINGH (RAJU BHAIYA): SHRI VINOD KUMAR SONKAR: DR. SUKANTA MAJUMDAR: SHRIMATI SANGEETA KUMARI SINGH DEO: SHRI S. VENKATESAN: DR. JAYANTA KUMAR ROY: SHRI POCHA BRAHMANANDA REDDY:

Will the Minister of FINANCE be pleased to state:-

- (a)  whether  the  47th  Meeting  of  Goods  and  Services  Tax  (GST)  Council  was  held recently and if so, the details thereof including the recommendations made therein along with  the  decisions  taken  on  changes  in  GST  Slabs  to  various  items  and  proposal  to include all consumable items under GST;
- (b) whether the Union Government has released GST due to States and if so, the details thereof along with the amount of pending GST compensation dues, State-wise;
- (c) whether it is true that GST compensation received by the States forms a large part of their revenue and if so, the details thereof;
- (d) whether the State Governments have requested the Union Government to extend the GST compensation cess;
- (e) if so, the details thereof along with the names of States which demanded continuance of  GST  compensation  in  the  meeting  including  those  that  took  up  the  position  that  it needed not continue and the response of the Government in this regard; and
- (f)  whether the Government has proposed any change in the ratio of sharing of CGST and SGST and if so, the details thereof?

## THE MINISTER OF STATE IN MINISTRY OF FINANCE

## (SHRI PANKAJ CHAUDHARY)

(a):-  Yes  Sir,  47 th Meeting  of  Goods  and  Services  Tax  (GST)  Council  was  held  at Chandigarh on 28 th & 29 th June, 2022. GST Council has taken decisions on many issues including revision of GST rate, removal of GST exemptions etc. On the recommendation of  Group  of  Ministers  (GoM)  on  rate  rationalization,  GST  rate  was  revised  to  remove inverted duty structure  on  certain  goods  and services. Similarly, GST Council had also recommended  reduction  of  GST  rates  on  certain  goods  like  medical  appliances  and services  like  transport  of  goods  and  passengers  by  ropeways.  Hitherto  GST  was exempted on specified food items, grains etc. when not branded, or right on the brand has  been  foregone.  It  has  been  recommended  to  revise  the  scope  of  exemption  to exclude from it pre-packaged and pre-labelled retail pack in terms of Legal Metrology Act, including pre-packed, pre-labelled curd, lassi and butter milk etc. GST Council also took various decisions relating to procedural aspects of GST, some to make compliance easier and some to plug leakages including e-way Bills for gold and precious stones.

(b):- 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  has  been  cleared  by  Central  Government  for period  up  to  31.05.2022  by  releasing  of  ₹  86912  crore.  This  decision  has  been  taken despite the fact that only about ₹ 25,000 crore was available in the GST Compensation Fund.  The  balance  has  been  released  by  the  Centre  from  its  own  resources  pending collection  of  Cess.  Now,  GST  compensation  for  month  of  June,  2022  pending  to  all States/UTs 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.

(c):- No Sir.

(d)  &  (e):-  A  few  States  have  requested  the  Union  Government  to  extend  the  GST compensation period beyond June, 2022. In this regard, it is stated that 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.

As  decided  in  the  42 nd GST  Council  meeting,  Centre  has  extended  levy  and collection  of  GST  Compensation  Cess  upto  March,  2026  vide  Notification  No.1/2022Compensation Cess dated 24.06.2022. The amount so collected would be utilized for the repayment of back to back loans released to States in 2020-21 and 2021-22 in lieu of GST  Compensation  shortfall  and  for  payment  of  GST  compensation  for  the  month  of June, 2022 and arrears of previous FYs based on AG reconciled figures.

(f):- No Sir.

*****

## Details of provisional GST compensation pending for the month of June 2022

(in Rs. Crore)

| S. No.   | Name of State/UT   | Balance GST compensation yet to be released   |
|----------|--------------------|-----------------------------------------------|
| (1)      | (2)                | (3)                                           |
| 1        | Andhra Pradesh     | 1371                                          |
| 2        | Arunachal Pradesh  | -                                             |
| 3        | Assam              | 386                                           |
| 4        | Bihar              | 418                                           |
| 5        | Chhattisgarh       | 1005                                          |
| 6        | Delhi              | 2415                                          |
| 7        | Goa                | 244                                           |
| 8        | Gujarat            | 2311                                          |
| 9        | Haryana            | 1331                                          |
| 10       | Himachal Pradesh   | 455                                           |
| 11       | J & K              | 418                                           |
| 12       | Jharkhand          | 685                                           |
| 13       | Karnataka          | 3849                                          |
| 14       | Kerala             | 1559                                          |
| 15       | Madhya Pradesh     | 1452                                          |
| 16       | Maharashtra        | 4183                                          |
| 17       | Manipur            | -                                             |
| 18       | Meghalaya          | -                                             |
| 19       | Mizoram            | -                                             |
| 20       | Nagaland           | -                                             |
| 21       | Odisha             | 1052                                          |
| 22       | Puducherry         | 146                                           |
| 23       | Punjab             | 1977                                          |
| 24       | Rajasthan          | 1640                                          |
| 25       | Sikkim             | -                                             |
| 26       | Tamil Nadu         | 2493                                          |
| 27       | Telangana          | 1134                                          |
| 28       | Tripura            | -                                             |
| 29       | Uttar Pradesh      | 2417                                          |
| 30       | Uttarakhand        | 687                                           |
| 31       | West Bengal        | 1637                                          |
| Total    |                    | 35266                                         |