Govt to release Rs 30,000 cr GST compensation to states this month: FM

New Delhi, Mar 24 (KNN) The government will release Rs 30,000 crore as Goods and Services Tax (GST) compensation to states this month, from the compensation cess collections during the year, Finance Minister Nirmala Sitharaman informed the Lok Sabha.

According to the Minister, the pending compensation dues to states for 2020-21 are expected to be more than Rs 77,000 crore.

“The GST Compensation due to States from April 2020 to January 2021 is Rs 2,17,844 crore, and back-to-back loans released to states to meet the compensation shortfall are Rs 1,10,208 crore,” she said on Tuesday.

“So, the compensation likely due to states and UTs in FY 2020-21 is Rs 77,636 crore,” she added.

Meanwhile in Rajya Sabha, Minister of State for Finance and Corporate Affairs Anurag Thakur said that increased economic activities have resulted in higher GST collection which stood above Rs 1 lakh crore for five months in a row since October 2020.

Thakur, during Question Hour, said this could be possible on the back of the measures taken by the government to boost economic activities over the last year to deal with the COVID-19 pandemic.

"GST collection has witnessed above Rs 1 lakh crore for a stretch of five months since October 2020... The GST collection during the period has been higher than the collection in the same period last year," he added.

GST collection has increased. If you see e-way bill data, numbers... activities have increased, the minister said.