No Discrepancies in payment of GST to States

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
UNSTARRED QUESTION NO-5137
TO BE ANSWERED ON MONDAY, THE 4th APRIL, 2022

GST DISCREPANCIES

5137. SHRIMATI GEETA KORA:
SHRIMATI NAVNEET RAVI RANA:
SHRI DILESHWAR KAMAIT:

Will the Minister of FINANCE be pleased to state:-

(a) the details of Goods and Services Tax (GST) arrears payable to the States including Jharkhand, Bihar and Maharashtra during the last three years, State/year-wise;

(b) whether any discrepancies have been found in the arrears of GST payable to the States and the amount actually paid to them; and

(c) if so, the details thereof along with the reasons therefor?

ANSWER

THE MINISTER OF STATE IN MINISTRY OF FINANCE

(SHRI PANKAJ CHAUDHARY)

(a):- As per Section 7(2) of the Goods and Services Tax (Compensation to States) Act, 2017, the compensation payable to a State shall be provisionally calculated and released at the end of every two months period, and shall be finally calculated for every financial year after the receipt of final revenue figures, as audited by the Comptroller and Auditor-General of India.

Taking into account back to back loan amount of Rs.1.10 lakh crore released to States in FY 2020-21 in lieu of GST compensation, entire admissible provisional GST compensation has already been released to the States for the financial years 2017-18, 2018-19, 2019-20 and 2020-21. The economic impact of the pandemic has led to higher compensation requirement due to lower GST collection and at the same time lower collection of GST compensation cess. Accordingly, Centre borrowed Rs.1.59 lakh crore through special window and released as back to back loan to States to meet the compensation shortfall in the FY 2021-22.

Further, after taking into account the GST compensation released from Compensation Fund as well as back-to-back loan released in FY 2021-22, details of provisional GST compensation pending to States for period April, 2021 to January, 2022 is as per Annexure.

Centre is committed to release full GST Compensation to the States/UTs as per GST (Compensation to States) Act, 2017 for the transition period by extending the levy of Compensation cess beyond 5 years to meet the GST revenue shortfall as well as servicing the loan borrowed through special window scheme.

Apportionment of IGST to States and payment of States’ share in CGST has been fully done.

(b) to (c):-No Sir. Final GST Compensation due to States is calculated on the basis of the revenue figures certified by the Accountant General of the concerned State. Many States including Jharkhand, Bihar and Maharashtra have not submitted the AG’s certified revenue figures since implementation of GST and therefore, Centre released only provisional admissible GST compensation to the States who have not submitted the AG’s certified revenue figures.

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Annexure

Details of GST compensation released/pending for FY 2021-22

(in Rs. Crore)