Parliamentary proceedings | States still due a total of 17,176 crore in GST compensation as of June: Govt.

On December 20, the government told the Rajya Sabha that the States still due 17,176 crore in GST compensation as of June 2022.

Pankaj Chaudhary, a minister of state for finance, responded to questions during the question period by stating that the Centre is providing States with GST compensation for a period of five years. He said that the Indian government has compensated the States after taking out loans of 1.1 lakh crore and 1.59 lakh crore in the years 2020–21 and 2021–22, respectively, even during COVID–19, when no GST was collected.

The Minister informed the parliament that just a total of “17,176 crore GST compensation” was still unpaid as of June 2022. Finance Minister Nirmala Sitharaman responded to additional inquiries by saying, “As of now, because we have somewhat cleared all the dues up to June, and approximately 17,000 crores pending is to be given.”

This news is written by Ms. Pujari Dharani, Research Assistant, All India Legal Forum.