The central govt on Monday said that it will distribute Rs 20,000 crores to states as GST compensation later in the evening. Between April & July, the GST compensation requirements of the states were at Rs 1.51L crores.
Briefing media after meeting of the 42nd GST Council, Finance Minister said that the council had taken up the long-pending matter of Integrated Goods and Services Tax. She said that earlier there was no formula for devolution of Integrated Goods and Services Tax (IGST), which had resulted in several irregularities in its distribution.
Finance Minister Nirmala Sitharaman said to the reporters that centre will release a cumulative 24,000 crores by next week to the states which received less apportionment of IGST (Integrated GST) against their actual dues for 2017-18. She said that this year, they could collect compensation cess amounting to Rs 20,000 crore and that’ll get distributed to states by the night.
Further, she said that the centre will retrieve the excess IGST apportioned to certain states. A committee under the chairmanship of Bihar Deputy Chief Minister Sushil Modi has been formed to settle the issue of IGST. An official statement read that levy of compensation cess to be extended beyond the transportation period of five years, i.e, beyond June 2022, for such period as may be required to meet the revenue gap.