Friday, December 2nd, 2022 17:45:43

Centre to release Rs. 20,000 crore as compensation to States for revenue losses

Updated: October 6, 2020 1:57 pm
The Centre will urgently disburse nearly 20 thousand crore rupees among the states from the amount collected as compensation cess this year.

Finance Minister Nirmala Sitharaman made the announcement after the 42nd GST Council meet on Monday.

Briefing the media in New Delhi, Finance Minister informed that by next week, the Centre will also disburse Rs. 25 thousand crore towards Integrated GST for 2017-18 to those states that received less amount due to the anomalies.

The GST Council also recommended the extension of Levy of Compensation Cess beyond the transition period of five years which is beyond June, 2022, for such period as may be required to meet the revenue gap.

Ms. Sitharaman informed that the GST Council has deferred the decision on the mode of payment of pending GST compensation share of the states to 12th October meeting of the Council.

She said that about 20 to 21 states chose the option given by the Centre which allowed the states to borrow to cover the compensation shortfall.

Comments are closed here.