The Government is providing claims to the States under GST. As per provisions in Section 7 of the GST (Compensation to States) Act, 2017 loss of revenue to the States shall be calculated and compensation for loss of revenue to the State shall be provisionally calculated and released at the end of every two months’ period. As per Section 4 of the said Act, financial year 2015-16 has been taken as the base year for calculating compensation amount payable to States for loss of revenue during transition period. The projected nominal growth rate of revenue subsumed for a state during the transition period shall be 14% per annum. On this basis, the revenue loss due to implementation of GST to the states for the month of July, 2017 to February, 2018 has been estimated and accordingly, GST Compensation paid to the States/ UTs on bimonthly basis for the period of July 2017 to February, 2018 as below:-

Period	Amount of GST compensation paid (Rs. in crore)
July – Aug, 2017	10806
Sept – Oct, 2017	13694
Nov- Dec, 2017	3898
Jan – Feb, 2018	11495
Total	39893

This was stated by Shri Rajiv Pratap Shukla, Minister of State for Finance in written reply to a question in Rajya Sabha.

GST compensation mechanism ensures provisional bimonthly payments to states based on a specified base year and projected growth. The GST (Compensation to States) Act, 2017 mandates provisional calculation and release of compensation for State revenue loss every two months, using 2015-16 as the base year and a projected nominal growth rate of 14% per annum to estimate counterfactual subsumed revenues; on that basis bi monthly compensation payments were provisionally computed and disbursed for July 2017-February 2018, with aggregate amounts reported for each bimonthly period and a total for the interval.