The Centre has released Goods and Services Tax (GST) compensation of Rs 30,000 crores to states as part compensation admissible for FY 2020-21 on March 27. The total amount of compensation released so far for the year 2020-21 is Rs 70,000 crore, according to an official statement.
As per the decision of the GST Council, back to back the loan of Rs 1,10,208 crores has also been released in lieu of shortfall in the release of GST Compensation for FY 2020-21. In addition to the above, the Centre has also released Rs 28,000 crores (Rs 14,000 crore to States and Rs 14,000 crore to Centre) by way of adhoc settlement of IGST on March 30.
Taking into account the release of GST Compensation, back-to-back loan and adhoc IGST settlement, a balance of only Rs 63,000 crores approximately GST Compensation is pending to States/UTs for FY 2020-21.