Centre clears GST bill for states as 5 year compensation era ends

Updated : May 31, 2022 17:28
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EJ Biz Desk

GST latest news: The Modi Govt has released the entire amount of GST compensation payable to States up to 31st May, 2022 by releasing an amount of Rs.86,912 crores. 

In a statement issued the govt said that the money has been released despite the fact that only about Rs.25,000 crore is available in the GST Compensation Fund. The excess Rs 60,000 cr is being released by the Centre from its own resources pending collection of Cess.

Also read/watch| GDP hits a year low in March quarter; FY22 growth at 8.7%

GST was introduced in the country w.e.f. 1 July, 2017 and the states were assured for compensation for loss of any revenue arising on account of implementation of GST as per the provisions of the GST (Compensation to States) Act, 2017 for a period of five years. 2022 marks the end of the said 5 year tenure of compensation to states by the central govt. 


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