GST compensation due to States now totals Rs 17, 176 cr as on June 2022

New Delhi, Dec 20 (KNN) The Minister of State for Finance Pankaj Chaudhary on Tuesday informed the Rajya Sabha that a total compensation of Rs 17,176 crore is pending to states as on June 2022.

The minister pointed out that during Covid times when no GST was collected, the Government of India had given compensation to states after taking loans of Rs 1.1 lakh crore and 1.59 lakh crore during 2020-21 and 2021-22.

"As of now, since we have somewhat cleared all the dues up to June, and about Rs 17,000 crores pending is to be given," Finance Minister Nirmala Sitharaman told the house.

"Details of GST compensation pending for June 2022 for Tamil Nadu is Rs 1200.6148 crores only. Utilisation certificate from a state has not been reached, that cannot be treated as pending one," she said.

Responding to another query, she said in 2022-23, education has received more than one lakh crore, and the sector has been given higher priority.

"Let's remember, the Finance Commission actually has asked for devolution of funds directly to local bodies. We have given that. The prime minister, in his experience as chief minister, readily agreed to the 14th Finance Commission report. In that, directly money is going to local bodies," she told the members.

She said other than that any programme that is being carried by the state government or local self-government through the cess that is being collected, sometimes the central government is giving more than that is collected through cess on education, health, agriculture infrastructure, roads.

"All the cess is being collected for a particular purpose. That particular purpose is being obviously served through the states. Cesses are being collected by the Centre, no doubt. But they can't be kept by the Centre and that has to be spent that year on long term projects, which happens only through the states. Obviously, cess and surcharges which are collected are going only to states," Sitharaman said.

She also said that the Centre collected 28.1 percent of cess and surcharge in gross tax revenue of Rs 25.16 lakh crore in 2021-22.

This was 25.1 percent of Rs 20.27 lakh crore of gross tax revenue in 2020-21 and 18.2 percent of Rs 20.10 lakh crore of gross tax revenue in 2019-20, she told the House in her written reply. (KNN Bureau)