BUSINESS

GST compensation due to States is Rs. 1.51 lakh cr.

The GST collection during April-August declined on account of the COVID-19 induced lockdown, and the compensation due to States stands at over Rs. 1.51 lakh crore, Minister of State for Finance Anurag Singh Thakur said on Monday.

The provisional GST compensation due to States and Union Territories (UTs) for 2020-21 was highest for Maharashtra at Rs. 22,485 crore, followed by Karnataka (Rs. 13,763 crore), Uttar Pradesh (Rs. 11,742 crore), Gujarat (Rs. 11,563 crore) and Tamil Nadu (Rs. 11,269 crore).

The total provisional GST compensation due to 31 States and UTs for 2020-21 put together stands at Rs. 1,51,365 crore, as per data shared in a written reply to a question in the Lok Sabha.

In the current fiscal year, States are staring at a staggering Rs. 2.35 lakh crore Goods and Services Tax (GST) revenue shortfall.

The Centre late last month gave two options to States to borrow either Rs. 97,000 crore from a special window facilitated by the RBI or Rs. 2.35 lakh crore from the market.

It had also proposed extending the compensation cess levied on luxury, demerit and sin goods beyond 2022 to repay the borrowing.

In reply to a separate question, Mr. Thakur said the total net GST target for the Centre has been pegged at Rs. 6,90,500 crore for 2020-21 in the Union Budget.