Centre to Release GST Dues to all States in 2 Installments

New Delhi: Just two days after presenting the Budget for Financial Year 2020-21, the Central government today announced that it will release all due Goods and Services Tax compensation to all the states in two installments. Union Minister of State for Finance and Corporate Affairs Anurag Thakur gave the reply in Lok Sabha today after several MPs from Telangana and Odisha complained during Question Hour that their states were not getting the share of the GST and Integrated Goods and Service Tax.

“All due GST compensation will be given to states in two installments,” Anurag Thakur replied. The minister said GST Act, 2017 provides for compensation to States/UTs on account of revenue loss due to implementation of GST on a bi-monthly basis. Accordingly, he said, the states have been paid GST compensation on a bi-monthly basis with effect from July, 2017.

Thakur said the GST Compensation has been released till September, 2019 and the next bi-monthly GST Compensation is due for October-November, 2019. The minister said a total of Rs 2,10,969.49 crore has been released as GST compensation to states so far including UTs of Delhi and Puducherry after implementation of GST with effect from July 1, 2017.