Comments
The Centre has released ₹17,000 crore to States as compensation for shortfall in GST revenue. This is part of compensation released once in two months on account of revenue shortfall due to shift to the new tax regime.
In a statement on Wednesday, the Finance Ministry said that with this, the total amount of compensation released to the States/UTs during 2021-22 so far is ₹60,000 crore. As per the decision of GST Council, back-to-back loan of ₹1.59-lakh crore has already been released in lieu of shortfall in the release of GST compensation during the current financial year.
The Centre has estimated the shortfall in GST compensation payable to the States in the current fiscal at ₹2.59-lakh crore, of which about ₹1.59-lakh crore would have to be borrowed this year.
The Centre expects to collect over ₹1-lakh crore through cess on luxury, demerit and sin goods, which will be given to the States to compensate them for the shortfall in revenue arising out of the GST implementation.
GST collection surged to ₹1.30-lakh crore in October, the second highest since its implementation in July 2017.
The highest GST collection of ₹1.41-lakh crore was recorded in April 2021 This is the fourth time in a row when the GST collection was upwards of ₹1-lakh crore. The mop-up from GST was ₹1.17-lakh crore in September 2021.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.