Lok Sabha Question No. 486 (UNSTARRED), answered on 2023-07-24
Subject: NPA in MSMEs
Ministry: FINANCE
Asked by: Balashowry Vallabbhaneni

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

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## LOK SABHA

## UNSTARRED QUESTION NO. 486

## TO BE ANSWERED ON MONDAY, JULY 24, 2023/SRAVANA 5, 1945 (SAKA) SETTING UP OF GST APPELLATE TRIBUNAL

## 486. ADV. A.M. ARIFF:

## Will the Minister of FINANCE be pleased to state:

- (a) whether  the  Government  intends  to  expedite  the  setting  up  of  GST  Appellate Tribunal  to  protect  the  interests  of  the  State  Government  and  if  so,  the  details thereof;
- (b) whether  the  Government  has  taken  note  of  the  finding  of  the  15th  Finance Commission that while 62.4 per cent of the expenditure commitments are borne by the State Governments, 62.7 per cent of the total receipts are taken away by the Union Government;
- (c) if  so, whether the Government intends to enhance the GST revenue sharing from the present 50:50 to 60:40 between States and Union as recommended by several expert committees;
- (d) if not, the reasons therefor; and
- (e) the  details  of  the  shortfall/excess  as  on  31st  March  2023  in  State  revenues compared to 31st March 2017 as a result of GST implementation in each of the States?

## ANSWER

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

(a): Yes.  Recently,  the  GST  Council  in  its  50 th Meeting  held  on  11 th July,  2023  has made various recommendations for expeditious setting up of GST Appellate Tribunal (GSTAT)  such  as    the  provisions  of  Finance  Act,  2023  pertaining  to  GSTAT  to  be notified with effect from 01.08.2023, recommendation of the Goods and Services Tax Appellate Tribunal (Appointment and Conditions of Service of President and Members) Rules, 2023, Chief Secretary of Maharashtra to be a Member of ScSC to be constituted for nominating Technical Member (State) and to start the State Benches of GSTAT in a phase  wise  manner.  Accordingly,  the  work  related  to  notifying  the  said  provisions  of Finance  Act,  2023  and  the  constitution  of  Principal  Bench  and  State  Benches  of GSTAT, is in progress.

- (b): The Government has examined the recommendations of 15 th Finance Commission.
- (c): There is no such proposal under consideration.

(d): As per the recommendations of the 15 th Finance Commission of vertical share of 41% of the divisible pool of taxes for the States for 2021-22 to 2025-26, in addition to the distribution of the amount of IGST in the ratio of 50:50, 41% of Centre's GST is devolved to states. Accordingly, States are receiving more than 70% of the revenue from GST sharing. In addition, the Union also finances many other grants/transfers to the State for disaster relief, local bodies, revenue deficit grants, State specific grants and other grants through various Centrally Sponsored Schemes and Central Sector Schemes.

(e): The details are placed at Annexure-I.

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| SGST Revenue including Regular and Ad-hoc IGST Settlement                                             | SGST Revenue including Regular and Ad-hoc IGST Settlement                                             | SGST Revenue including Regular and Ad-hoc IGST Settlement                                             | SGST Revenue including Regular and Ad-hoc IGST Settlement                                             | SGST Revenue including Regular and Ad-hoc IGST Settlement                                             |
|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|
| State Code                                                                                            | State                                                                                                 | FY 2016-17 (Rs. In Crores)                                                                            | FY 2022-23 (Rs. In Crores)                                                                            | Shortfall/Excess in State Revenues (%)                                                                |
| 1                                                                                                     | Jammu and Kashmir                                                                                     | 5,434                                                                                                 | 7,272                                                                                                 | 34%                                                                                                   |
| 2                                                                                                     | Himachal Pradesh                                                                                      | 4,193                                                                                                 | 5,543                                                                                                 | 32%                                                                                                   |
| 3                                                                                                     | Punjab                                                                                                | 17,072                                                                                                | 19,422                                                                                                | 14%                                                                                                   |
| 4                                                                                                     | Chandigarh                                                                                            | 1,664                                                                                                 | 2,124                                                                                                 | 28%                                                                                                   |
| 5                                                                                                     | Uttarakhand                                                                                           | 5,656                                                                                                 | 7,554                                                                                                 | 34%                                                                                                   |
| 6                                                                                                     | Haryana                                                                                               | 17,363                                                                                                | 30,952                                                                                                | 78%                                                                                                   |
| 7                                                                                                     | Delhi                                                                                                 | 19,134                                                                                                | 28,284                                                                                                | 48%                                                                                                   |
| 8                                                                                                     | Rajasthan                                                                                             | 19,561                                                                                                | 35,014                                                                                                | 79%                                                                                                   |
| 9                                                                                                     | Uttar Pradesh                                                                                         | 38,062                                                                                                | 66,052                                                                                                | 74%                                                                                                   |
| 10                                                                                                    | Bihar                                                                                                 | 14,387                                                                                                | 23,384                                                                                                | 63%                                                                                                   |
| 11                                                                                                    | Sikkim                                                                                                | 280                                                                                                   | 839                                                                                                   | 200%                                                                                                  |
| 12                                                                                                    | Arunachal Pradesh                                                                                     | 292                                                                                                   | 1,623                                                                                                 | 456%                                                                                                  |
| 13                                                                                                    | Nagaland                                                                                              | 292                                                                                                   | 964                                                                                                   | 230%                                                                                                  |
| 14                                                                                                    | Manipur                                                                                               | 396                                                                                                   | 1,439                                                                                                 | 264%                                                                                                  |
| 15                                                                                                    | Mizoram                                                                                               | 215                                                                                                   | 892                                                                                                   | 314%                                                                                                  |
| 16                                                                                                    | Tripura                                                                                               | 899                                                                                                   | 1,463                                                                                                 | 63%                                                                                                   |
| 17                                                                                                    | Meghalaya                                                                                             | 725                                                                                                   | 1,490                                                                                                 | 105%                                                                                                  |
| 18                                                                                                    | Assam                                                                                                 | 6,823                                                                                                 | 12,639                                                                                                | 85%                                                                                                   |
| 19                                                                                                    | West Bengal                                                                                           | 22,911                                                                                                | 39,052                                                                                                | 70%                                                                                                   |
| 20                                                                                                    | Jharkhand                                                                                             | 7,308                                                                                                 | 11,490                                                                                                | 57%                                                                                                   |
| 21                                                                                                    | Odisha                                                                                                | 12,596                                                                                                | 19,613                                                                                                | 56%                                                                                                   |
| 22                                                                                                    | Chhattisgarh                                                                                          | 8,387                                                                                                 | 11,417                                                                                                | 36%                                                                                                   |
| 23                                                                                                    | Madhya Pradesh                                                                                        | 17,475                                                                                                | 27,825                                                                                                | 59%                                                                                                   |
| 24                                                                                                    | Gujarat                                                                                               | 32,896                                                                                                | 58,009                                                                                                | 76%                                                                                                   |
| 25                                                                                                    | Daman and Diu *                                                                                       | 735                                                                                                   |                                                                                                       |                                                                                                       |
| 26                                                                                                    | Dadra and Nagar Haveli *                                                                              | 873                                                                                                   | 1,183                                                                                                 | -26%                                                                                                  |
| 27                                                                                                    | Maharashtra                                                                                           | 68,975                                                                                                | 1,29,129                                                                                              | 87%                                                                                                   |
| 29                                                                                                    | Karnataka                                                                                             | 41,204                                                                                                | 65,579                                                                                                | 59%                                                                                                   |
| 30                                                                                                    | Goa                                                                                                   | 2,487                                                                                                 | 3,593                                                                                                 | 44%                                                                                                   |
| 31                                                                                                    | Lakshadweep                                                                                           | -                                                                                                     | 47                                                                                                    | 0%                                                                                                    |
| 32                                                                                                    | Kerala                                                                                                | 19,176                                                                                                | 29,188                                                                                                | 52%                                                                                                   |
| 33                                                                                                    | Tamil Nadu                                                                                            | 33,956                                                                                                | 58,194                                                                                                | 71%                                                                                                   |
| 34                                                                                                    | Puducherry                                                                                            | 1,249                                                                                                 | 1,161                                                                                                 | -7%                                                                                                   |
| 35                                                                                                    | Andaman and Nicobar Islands                                                                           | 118                                                                                                   | 484                                                                                                   | 309%                                                                                                  |
| 36                                                                                                    | Telangana                                                                                             | 18,364                                                                                                | 38,008                                                                                                | 107%                                                                                                  |
| 37                                                                                                    | Andhra Pradesh                                                                                        | 15,816                                                                                                | 28,589                                                                                                | 81%                                                                                                   |
| 38                                                                                                    | Ladakh                                                                                                | -                                                                                                     | 517                                                                                                   | 0%                                                                                                    |
| Grand Total 4,56,977 7,70,027 69% Dadra and Nagar Haveli and Daman and Diu got merged on 9th Dec 2019 | Grand Total 4,56,977 7,70,027 69% Dadra and Nagar Haveli and Daman and Diu got merged on 9th Dec 2019 | Grand Total 4,56,977 7,70,027 69% Dadra and Nagar Haveli and Daman and Diu got merged on 9th Dec 2019 | Grand Total 4,56,977 7,70,027 69% Dadra and Nagar Haveli and Daman and Diu got merged on 9th Dec 2019 | Grand Total 4,56,977 7,70,027 69% Dadra and Nagar Haveli and Daman and Diu got merged on 9th Dec 2019 |