Reportedly with an aim to provide states GST compensation swiftly, the Centre has released Rs 19,950 crore as GST compensation cess to the states/UTs.Meanwhile with this, the total amount of GST compensation released by the Centre to the states and union territories comes to Rs. 1,20,498 crore during the current financial year. However, only Rs 78874 crore has been collected as compensation cess in the current financial year (till january 31, 2020).
Furthermore states have often complained of delay in GST compensation one of the main bone of contentions while GST was being conceptualised. Perhaps since the GST came into force in July 2017, states have had to forgo taxes such as VAT and they have been compensated by the Centre for loss in revenue. Finance ministry officials said that a total GST compensation cess of Rs 62,611 crore was collected in the FY 2017-18, out of which Rs 41,146 cr was released to the states/UTs in the FY 2017-18 as GST compensation. Further, in the FY 2018-19, Rs 95,081 crore was collected as GST compensation cess, of which Rs 69,275 crore was released to the states/UTs as GST compensation in the FY 2018-19.
Moreover Finance ministry sources further said that, as on march 31, 2019, an amount of Rs 47,271 crore compensation cess collected had remained unutilised after the release of GST compensation to the states/UTs in 2017-18 and 2018-19.