The Centre has introduced Rs 81,043 crore as GST compensation to states for April-September 2019, Minister of Point out for Finance Anurag Singh Thakur reported on Tuesday.
In a published reply to a dilemma in the Rajya Sabha, he reported GST compensation cess selection has demonstrated upward craze due to the fact October 2019.
GST compensation cess of Rs seven,607 crore was collected in October, Rs seven,727 crore in November, Rs 8,331 crore in December and Rs 8,637 crore in January.
For 2019-twenty, the volume qualified to be collected from cess in GST was Rs one.09 lakh crore. Of this, Rs 70,534 crore has been collected among April-December 2019.
The volume of GST compensation introduced to states for April-September 2019 stood at Rs 81,043 crore, Thakur reported.
For 2018-19 fiscal, the net selection of GST compensation cess stood at Rs 95,081 crore as from the focus on of Rs ninety,000 crore. For full fiscal, the government had introduced Rs 81,141 crore to states as compensation.
For 2017-eighteen, the net selection from cess stood at Rs sixty two,612 crore, as from the focus on of Rs sixty one,331 crore. The compensation volume introduced to states was Rs forty eight,785 crore.
Underneath GST law, states were being certain to be paid out for any decline of income in the to start with five many years of GST implementation, which arrived into power on July one, 2017.
The shortfall is calculated assuming a 14 per cent annual expansion in GST collections by states more than the base year of 2015-sixteen.
“For offering this kind of compensation to states, compensation cess is remaining levied on specified luxury and demerit products as per provisions in Section 8 of the GST (Payment to States) Act, 2017, and compensation cess is remaining credited into a non-lapsable Fund identified as Products and Providers Tax Payment Fund which sorts portion of the Community Account of India,” Thakur reported.