State and year-wise details of GST compensation given from 2017

GOVERNMENT OF INDIA
MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

LOK SABHA

UN-STARRED QUESTION NO-2785
ANSWERED ON-21/03/2022

PAYMENT OF GST COMPENSATION

2785. SHRI PRADYUT BORDOLOI:

SHRI KESINENI SRINIVAS:

SHRI RAM MOHAN NAIDU KINJARAPU:

Will the Minister of FINANCE be pleased to state:

(a) the monthly details of the inflation adjusted growth of the Goods and Services Tax (GTS) collections;

(b) the details of GST compensation given to the States since the start of GST regime in 2017, State-wise and year-wise;

(c) the details of all instances when the compensation paid to the States was not according to the provision of 14 per cent annual growth rate over the base year (FY 16) revenues of States;

(d) whether the interest-free loans issued by the Government in lieu of GST compensation will bind the borrowing of States under Article 293(4) of the constitution or there is any exemption from that provision and if so, the details thereof; and

(e) whether the Government is considering any proposals to rationalise the tax slabs under GST tax regime and if so, the details thereof?

ANSWER

MINISTER OF STATE IN MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)

(a): The details of gross GST collection during the FY 2021-22 is as follows: –

(in Rs. Crore)

Entities pay GST on the basis of output tax and input tax credit on the value of supply of goods or services and applicable tax rate. Inflation adjusted figures of tax collection is not maintained.

(b) & (c): As per Section 7 of the GST (Compensation to States) Act, 2017, the States are required to be compensated for loss of revenue due to implementation of GST (w.e.f. 01.07.2017) for 5 years’ period. During transition period, the States’ revenues are protected at 14% growth rate per annum over the base year revenue (2015-16). Accordingly, the States are being compensated for any shortfall against their protected revenue. The year-wise details of GST compensation released to States/ UTs is as per Annexure.

(d):  No Sir, The back to back loan of Rs. 1.10 lakh crore & Rs. 1.59 Lakh crore released to States/ UTs in lieu of GST compensation respectively in year 2020-21 and 2021-22 is over and above the Net Borrowing Ceiling of the States fixed for the purpose of Article 293 of Constitution of India.

(e): GST rates are notified based on the recommendations of the GST Council. The Council has set up a Group of Ministers to recommend measures for GST rate rationalization with an objective to simplify the rate structure, to reduce classification related disputes and enhance GST revenue. The recommendation of the Group of Ministers, as and when received, shall be considered by the Council for making recommendations as it considers appropriate.

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Annexure

Details of GST Compensation released to States/ UTs during the year

(Rs. in crore)