GST/IGST Collection & Compensation for States

In response to a query in the Rajya Sabha on December 3, 2024, the Ministry of Finance provided details about GST/IGST collections and compensation for states. Over the past five years, GST/IGST collections show a steady increase, with net collections reaching Rs. 18,09,870 crore in FY 2023-24. The total GST compensation released to states from FY 2017-18 to FY 2022-23 amounted to Rs. 664,765 crore, with Karnataka, Maharashtra, and Gujarat receiving the highest shares. Additionally, the GST Council is reviewing the issue of GST on life and health insurance, and a Group of Ministers has been set up to examine the appropriate GST rates. The answer includes state-specific compensation details, showing the varied financial impact across different regions.

Government of India
Ministry of Finance
Department of Revenue

RAJYA SABHA
UN-STARRED QUESTION NO. 894
TO BE ANSWERED ON TUESDAY, DECEMBER 03, 2024 /12 AGRAHAYANA, 1946 (SAKA)

COLLECTION OF GST/IGST

894: Smt. Jebi Mather Hisham:

Will the Minister of FINANCE be pleased to state:

(a) the details of GST/IGST collection over the past five years;

(b) the amount given to each State in terms of GST compensation; and

(c) whether health insurance schemes will be excluded from the ambit of GST, if so, upto which premium limit the GST will be excluded?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI PANKAJ CHAUDHARY)

(a) The details of GST/IGST collection over the past five years are attached as per Annexure A.

(b) The details of the amount given to each State in terms of GST compensation are attached as per Annexure B.

(c) The GST rates and exemptions are notified on the basis of recommendations of GST Council, which is a constitutional body comprising of members from both the Union and State/UT Governments.

The issue of GST on life and health insurance policies was placed before the GST

Council in its 54^th Meeting held on 9^th September, 2024 at New Delhi. After detailed deliberations, GST Council recommended to constitute a Group of Ministers (GoM) to holistically look into the issues pertaining to GST on life insurance and health insurance, including suggesting rate of GST on health insurance.

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Annexure A

GST Collection during the last five Financial Years

(In Rs. Crores)

Annexure B

Details of GST Compensation released

(Rs. in Crore)