Centre releases Rs 36,400-crore GST compensation to states

by mehekkaoberoi
  • Ahead of the Goods and Services Tax (GST) Council meeting next week, the Centre on June 4 released compensation worth Rs 36,400 crore to states for three months up to February 2020.
  • The much-delayed compensation comes at a time when state finances are under severe stress due to the Covid-19 lockdown.
  • The GST compensation of Rs 1.15 trillion for April-November 2019 was released earlier, the government said.
  • This stands against Rs 95,551 crore collected as cess in the compensation fund in 2019-20 (FY20).
  • The compensation mechanism to states under GST has come under strain due to inadequate cess collection amid bleak consumer demand.
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