Lok Sabha Question No. 2785 (UNSTARRED), answered on 2022-03-21
Subject: Payment of GST Compensation
Ministry: FINANCE
Asked by: Pradyut Bordoloi, Srinivas Kesineni, Kinjarapu Ram Mohan Naidu

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UN-STARRED QUESTION NO-2785 ANSWERED ON-21/03/2022

## PAYMENT OF GST COMPENSATION

## 2785.   SHRI PRADYUT BORDOLOI:

SHRI KESINENI SRINIVAS:

SHRI RAM MOHAN NAIDU KINJARAPU:

Will the Minister of FINANCE be pleased to state:

- (a) the  monthly  details  of  the  inflation  adjusted  growth  of  the  Goods  and  Services  Tax  (GTS) collections;
- (b) the details of GST compensation given to the States since the start of GST regime in 2017, State-wise and year-wise;
- (c) the details of all instances when the compensation paid to the States was not according to the provision of 14 per cent annual growth rate over the base year (FY 16) revenues of States;
- (d) whether the interest-free loans issued by the Government in lieu of GST compensation will bind the borrowing of States under Article 293(4) of the constitution or there is any exemption from that provision and if so, the details thereof; and
- (e) whether the Government is considering any proposals to rationalise the tax slabs under GST tax regime and if so, the details thereof?

## ANSWER

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

- (a): The details of gross GST collection during the FY 2021-22 is as follows: -

| (in Rs. Crore)   | (in Rs. Crore)   |
|------------------|------------------|
| Month            | Amount           |
| April-21         | 1,39,708         |
| May-21           | 97,821           |
| June-21          | 92,800           |
| July-21          | 1,16,393         |
| August-21        | 1,12,020         |
| September-21     | 1,17,010         |
| October-21       | 1,30,127         |
| November-21      | 1,31,526         |
| December-21      | 1,29,780         |
| January-22       | 1,40,986         |
| February-22      | 1,33,026         |

Entities pay GST on the basis of output tax and input tax credit on the value of supply of goods or services and applicable tax rate. Inflation adjusted figures of tax collection is not maintained.

(b) & (c): As per Section 7 of the GST (Compensation to States) Act, 2017, the States are required to  be  compensated  for  loss  of  revenue  due  to  implementation  of  GST  (w.e.f.  01.07.2017)  for  5 years' period. During transition period, the States' revenues are protected at 14% growth rate per annum over the base year revenue (2015-16). Accordingly, the States are being compensated for any shortfall against their protected revenue. The year-wise details of GST compensation released to States/ UTs is as per Annexure.

(d): No Sir, The back to back loan of Rs. 1.10 lakh crore & Rs. 1.59 Lakh crore released to States/ UTs in lieu of GST compensation respectively in year 2020-21 and 2021-22 is over and above the Net Borrowing Ceiling of the States fixed for the purpose of Article 293 of Constitution of India.

(e): GST rates are notified based on the recommendations of the GST Council. The Council has set up a Group of Ministers to recommend measures for GST rate rationalization with an objective to simplify the rate structure, to reduce classification related disputes and enhance GST revenue. The recommendation  of  the  Group  of  Ministers,  as  and  when  received,  shall  be  considered  by  the Council for making recommendations as it considers appropriate.

****

## Details of GST Compensation released to States/ UTs during the year

(Rs. in crore)

| S.No   | Name of State/UT   | FY 2017- 18   | FY 2018- 19   | FY 2019- 20   | FY 2020- 21   | FY 2021- 22   | Total   |
|--------|--------------------|---------------|---------------|---------------|---------------|---------------|---------|
| (1)    | (2)                | (3)           | (4)           | (5)           | (6)           | (7)           | (8)     |
| 1      | Andhra Pradesh     | 382           | 0             | 1841          | 3527          | 3117          | 8868    |
| 2      | Arunachal Pradesh  | 15            | 0             | 0             | 6             | 0             | 21      |
| 3      | Assam              | 886           | 466           | 879           | 1370          | 1014          | 4615    |
| 4      | Bihar              | 3041          | 2571          | 3525          | 4359          | 1945          | 15441   |
| 5      | Chhattisgarh       | 1483          | 2261          | 3081          | 3212          | 1217          | 11254   |
| 6      | Delhi              | 157           | 4182          | 7436          | 5522          | 6446          | 23743   |
| 7      | Goa                | 252           | 476           | 819           | 813           | 911           | 3271    |
| 8      | Gujarat            | 3687          | 6149          | 10647         | 11335         | 8207          | 40024   |
| 9      | Haryana            | 1199          | 2820          | 5453          | 5066          | 2909          | 17447   |
| 10     | Himachal Pradesh   | 539           | 2037          | 1877          | 1764          | 1168          | 7385    |
| 11     | J&K                | 1137          | 1462          | 2279          | 2171          | 893           | 7942    |
| 12     | Jharkhand          | 1265          | 1029          | 1532          | 1958          | 1526          | 7310    |
| 13     | Karnataka          | 6246          | 10754         | 14497         | 13789         | 8976          | 54263   |
| 14     | Kerala             | 1772          | 2884          | 5575          | 6721          | 3856          | 20808   |
| 15     | Madhya Pradesh     | 2511          | 2866          | 4531          | 5293          | 3095          | 18296   |
| 16     | Maharashtra        | 1488          | 8330          | 15018         | 17423         | 17834         | 60094   |
| 17     | Manipur            | 24            | 0             | 0             | 22            | 0             | 46      |
| 18     | Meghalaya          | 124           | 73            | 101           | 172           | 163           | 633     |
| 19     | Mizoram            | 0             | 0             | 0             | 11            | 0             | 11      |
| 20     | Nagaland           | 0             | 0             | 0             | 14            | 0             | 14      |
| 21     | Odisha             | 2019          | 3390          | 3929          | 4362          | 1663          | 15362   |
| 22     | Puducherry         | 333           | 592           | 862           | 607           | 329           | 2723    |
| 23     | Punjab             | 4037          | 7129          | 8805          | 9694          | 4442          | 34107   |
| 24     | Rajasthan          | 2598          | 2176          | 4440          | 5633          | 3746          | 18593   |
| 25     | Sikkim             | 6             | 0             | 0             | 26            | 9             | 42      |
| 26     | Tamil Nadu         | 632           | 3151          | 8922          | 11142         | 6697          | 30544   |
| 27     | Telangana          | 169           | 0             | 2263          | 3103          | 2006          | 7541    |
| 28     | Tripura            | 129           | 155           | 171           | 277           | 101           | 833     |
| 29     | Uttar Pradesh      | 2124          | 308           | 5180          | 9324          | 8299          | 25235   |
| 30     | Uttarakhand        | 1283          | 2037          | 2477          | 2496          | 1475          | 9768    |
| 31     | West Bengal        | 1608          | 1977          | 4359          | 5776          | 4531          | 18251   |
|        | Total              | 41146         | 69275         | 120498        | 136988        | 96576         | 464484  |