Ministers from Telangana and Odisha complained that their states were not getting the share of the Goods and Services Tax (GST) and Integrated Goods and Service Tax (IGST). In response to that , Union minister of finance reported that the Centre will release all due GST compensation to states in two installments.
The minister said GST (Compensation to States) Act, 2017 provides for compensation to States or Union Territory (UT with legislature only) on account of revenue loss due to implementation of GST on a bi-monthly basis, with effect from July, 2017.
So far, 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 1st July, 2017.
Period for which compensation has been released:
- July 2017 to March 2018 : Rs 48,785.35 crore
- April 2018 to March 2019 : Rs 81,141.14 crore
- April to May 2019 : Rs 17,789 crore
- June to July 2019 : Rs 27,956 crore
- August to September 2019 : Rs 35,298 crore.