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Status Note on GST compensation released to States/UTs Rs. 2.78 lakh crore of compensation released to States for the year 2020-21 itself; nothing is pending for the year Centre released Rs. 7.35 lakh crore and compensation of Rs. 78,704 crore pending only for the year 2021-22 At the time of introduction of GST, the Constitution amendment provided that the Parliament, by law shall provide compensation to States for a period of five years for loss of revenue due to introduction of GST. A
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FAQ :
The Centre has released Rs 2.78 lakh crore in GST compensation to states for the financial year 2020-21.
No, there is no GST compensation pending for the year 2020-21.
Yes, the Centre borrowed and passed on Rs 1.1 lakh crore in 2020-21 and Rs 1.59 lakh crore in 2021-22 to states on a back-to-back basis to ensure they had adequate resources.
Including the assistance released on a back-to-back basis, a total of Rs 7.35 lakh crore has been released to states.
Yes, Rs 78,704 crore in GST compensation is currently pending for the year 2021-22 due to insufficient balance in the compensation fund.
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