GST compensation worth Rs 52,077 crore paid to states and union territories

Source:     Aug 13, 2018

The Union government on Friday said a GST compensation totalling Rs 52,077 Crore has been paid to states and UTs during the 11-month period through May 2018. Under the Goods and Services Tax (GST), implemented on July 1, 2017, the Centre has to compensate states/UTs for loss of their revenue on account of implementation of the new indirect tax regime.

 “states/UTs have been paid GST compensation of Rs 48,178 Crore for the period July 2017 to March 2018 and of Rs 3,899 Crore for the period of April-May 2018,” Minister of State for Finance Shiv Pratap Shukla said in a written reply in the Lok Sabha.

Total taxes collected under GST works out to be Rs 11.3 lakh Crore in the 13-month period ending July 2018. The maximum GST collection was Rs 1.03 lakh Crore in April. The collection dipped to Rs 94,016 Crore in May and has been gradually increasing in the subsequent months. In another reply, Shukla said the Centre is taking various steps to check evasion as well as educate the tax payers about the new tax regime and encouraging voluntary compliance.