Centre releases Rs 17,000 crore of GST compensation to States, Rs 500 Cr to Chhattisgarh

     New Delhi, November 28, 2022: After a prolonged demand from Chhattisgarh, the Government of India has released Rs 500 crore as the GST compensation to the state.

     An amount of Rs 17,000 crore has been released by the Central Government to the States and Union Territories, including Rs 500 crore to Chhattisgarh, towards the balance GST compensation for the period April to June, 2022.

     The total amount of compensation released to the States and UTs so far, including the aforesaid amount, during the year 2022-23 has been Rs 1,15,662 crore.

      This is despite the fact that total Cess collection till October, 2022 was only Rs.72,147 crore and the balance of Rs. 43,515 crore was being released by the Centre from its own resources, Central government sources said.

     The sources clarified, even in May this year, the Centre had released Rs 86,912 crore as provisional GST compensation to States for the period February to May 2022 although there was only about Rs 25,000 crore in the GST Compensation Fund, by making arrangement of funds of around Rs. 62,000 crore from its own resources.