Lok Sabha Question No. 2776 (UNSTARRED), answered on 2023-08-07
Subject: GST Share of Maharashtra and Uttar Pradesh
Ministry: FINANCE
Asked by: Jadon Chandra Sen, Arvind Ganpat Sawant, Sanjay Haribhau Jadhav, Vinayak Bhaurao Raut, Sanghamitra Maurya

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION NO. 2776

TO BE ANSWERED ON MONDAY, AUGUST 7, 2023 / SRAVANA 16, 1945 (Saka)

## GST Share of Maharashtra and Uttar Pradesh

†2776. DR. CHANDRA SEN JADON: SHRI ARVIND GANPAT SAWANT: SHRI SANJAY JADHAV: SHRI VINAYAK RAUT: DR. SANGHMITRA MAURYA:

Will the Minister of FINANCE be pleased to state:

- (a) the GST amount of Maharashtra and Uttar Pradesh to be paid by the Central Government;
- (b) the time by which the Central Government proposes to pay the Goods and Services Tax share of Maharashtra and Uttar Pradesh along with the reasons for withholding/delay in the payment;
- (c) whether the Government is planning to regularize the GST Payment so that none of the State Governments are deprived of their rightful funds on time; and
- (d) if so, the details thereof?

## ANSWER

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

- (a) to (d): GST collection consists of CGST, SGST and IGST. CGST is credited to Consolidated Fund of India (CFI) while SGST is credited to the Consolidated Fund of respective States. IGST is  being  levied  and  collected  by  the  Centre.  The  IGST  (Domestic  +  Imports)  so  collected  is apportioned / settled between the Union and the States/UTs on monthly basis, on the basis of place of consumption and cross utilization of ITC(Input Tax Credit) as envisaged under Goods and  Services  Tax  Settlement  of  Funds  Rules,  2017.  For  the  amount  of  IGST  remaining  unapportioned,  provisional/advance  settlement  is  done  from  time  to  time  on  an  ad-hoc  basis between Centre and States/UTs in the ratio of 50:50.

As per section  18 of  the  Constitution  (One  Hundred  and  First  Amendment) Act,  2016, compensation to the States for loss of revenue arising on account of implementation of the goods and services tax is payable for a period of five years. During this five year transition period, the States' revenue is protected at 14% per annum over the base year revenue of 2015-16. Central Government is committed for payment of GST compensation to States/UTs for five years as per law enacted by the Parliament according to the Constitutional provision.

Section 7(2) of Goods and Services Tax (Compensation to States) Act, 2017, enacted by Parliament, provides that 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. Government of India has already released the entire amount of provisionally admissible GST compensation to all States/UTs including Maharashtra and Uttar Pradesh for loss of revenue arising on account of implementation of Goods and Services Tax for five years i.e., from  1st  July,2017  to  30th  June,  2022.  Final  Compensation  arising  out  of  reconciliation  of provisional figures with audited figures is released immediately on receipt of the AG's certificate. No  amount  of  share  of  GST  is  pending  to  be  given  to  the  States  including  the  States  of Maharashtra and Uttar Pradesh.

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