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Government has compensated to the States/UTs for the reported revenue deficit on account of implementation of Goods and Services Tax (GST). As per provisions in Section 7 of the GST (Compensation to States) Act, 2017 loss of revenue to the States on account of implementation of Goods and Services Tax shall be payable during transition period and compensation payable to a State shall be provisionally calculated and released at the end of every two months during transition period of 5 years.
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.
As per section 7(c) of the said Act, the total compensation payable in any financial year shall be difference between the projected revenue for any financial year and the actual revenue collected by a State. On this basis, the revenue loss due to implementation of GST to the states for the month of July, 2017 to March, 2018 and April to May, 2018 has been estimated to be ₹ 48178 crore (Annexure-I) and ₹ 3899 crore (Annexure-II) respectively and accordingly, States/UTs have been paid GST Compensation of ₹ 48178 crore for the period of July 2017 to March, 2018 and of ₹ 3899 crore for the period of April-May, 2018.
Annexure-I
Details of GST Compensation released to States/ UTs for FY 2017-18.
S. No. | Name of State/UT
| GST Compensate on released for July and Aug 2017 (Rs. In Crore)
| GST compensation released for Sep and Oct 2017 (Rs. In Crore)
| GST Compensation released for Nov and Dec 2017 (Rs. in Crore) | GST Compens ation released for Jan and Feb 2018 (Rs. in Crore) | GST Compens ation released for March 2018 (Rs. in Crore)
| Total (Rs. In Crore) |
(1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) |
| Andhra |
|
|
|
|
|
|
1 | Pradesh | 116 | 266 | 0 | 0 | 0 | 382 |
2 | Arunachal |
|
|
|
|
|
|
Pradesh | 15 | 0 | 0 | 0 | 0 | 15 | |
| |||||||
3 | Assam | 338 | 331 | 15 | 202 | 94 | 980 |
4 | Bihar | 692 | 1054 | 373 | 922 | 99 | 3140 |
5 | Chhattisgarh | 253 | 562 | 219 | 449 | 106 | 1589 |
6 | Delhi | 115 | 42 | 0 | 0 | 169 | 326 |
7 | Goa | 68 | 35 | 99 | 50 | 29 | 281 |
8 | Gujarat | 1402 | 880 | 252 | 1153 | 590 | 4277 |
9 | Haryana | 476 | 325 | 0 | 398 | 262 | 1461 |
| Himachal |
|
|
|
|
|
|
10 | Pradesh | 0 | 0 | 539 | 336 | 184 | 1059 |
11 | J & K | 367 | 314 | 127 | 329 | 23 | 1160 |
12 | Jharkhand | 313 | 489 | 94 | 369 | 103 | 1368 |
13 | Karnataka | 1189 | 2082 | 859 | 2116 | 1289 | 7535 |
14 | Kerala | 810 | 395 | 0 | 567 | 330 | 2102 |
| Madhya |
|
|
|
|
|
|
15 | Pradesh | 433 | 908 | 0 | 1170 | 157 | 2668 |
16 | Maharashtra | 0 | 834 | 0 | 654 | 1589 | 3077 |
17 | Manipur | 24 | 0 | 0 | 0 | 0 | 24 |
18 | Meghalaya | 52 | 38 | 20 | 14 | 16 | 140 |
19 | Mizoram | 0 | 0 | 0 | 0 | 0 | 0 |
20 | Nagaland | 0 | 0 | 0 | 0 | 0 | 0 |
21 | Odisha | 333 | 687 | 306 | 693 | 245 | 2264 |
22 | Puducherry | 44 | 122 | 58 | 109 | 52 | 385 |
23 | Punjab | 1138 | 960 | 740 | 1199 | 581 | 4618 |
24 | Rajasthan | 1205 | 706 | 0 | 687 | 301 | 2899 |
25 | Sikkim | 0 | 0 | 0 | 6 | 0 | 6 |
26 | Tamil Nadu | 530 | 102 | 0 | 0 | 0 | 632 |
27 | Telangana | 7 | 162 | 0 | 0 | 0 | 169 |
28 | Tripura | 31 | 43 | 14 | 41 | 20 | 149 |
29 | Uttar Pradesh | 190 | 1330 | 0 | 604 | 308 | 2432 |
30 | Uttarakhand | 223 | 460 | 183 | 417 | 149 | 1432 |
31 | West Bengal | 441 | 567 | 0 | 600 | 0 | 1608 |
| Total | 10805 | 13694 | 3898 | 13085 | 6696 | 48178 |
Annexure-II
Details of GST Compensation released to States/UTs for FY 2018-19
S. No.
| Name of State/UT
| GST compensation released for April- May, 2018 (Rs. In Crore) |
(1) | (2) | (3) |
1 | Andhra Pradesh | 0 |
2 | Arunachal Pradesh | 0 |
3 | Assam | 0 |
4 | Bihar | 325 |
5 | Chhattisgarh | 257 |
6 | Delhi | 0 |
7 | Goa | 28 |
8 | Gujarat | 174 |
9 | Haryana | 0 |
10 | Himachal Pradesh | 225 |
11 | J & K | 147 |
12 | Jharkhand | 76 |
13 | Karnataka | 792 |
14 | Kerala | 67 |
15 | Madhya Pradesh | 130 |
16 | Maharashtra | 0 |
17 | Manipur | 0 |
18 | Meghalaya | 0 |
19 | Mizoram | 0 |
20 | Nagaland | 0 |
21 | Odisha | 282 |
22 | Puducherry | 79 |
23 | Punjab | 944 |
24 | Rajasthan | 106 |
25 | Sikkim | 0 |
26 | Tamil Nadu | 0 |
27 | Telangana | 0 |
28 | Tripura | 2 |
29 | Uttar Pradesh | 0 |
30 | Uttarakhand | 265 |
31 | West Bengal | 0 |
| Total | 3899 |
This was stated by Shri Shiv Pratap Shukla, Minister of State for Finance in a Written reply to a question in Lok Sabha.
GST compensation mechanism: provisional two monthly payments to states for revenue shortfalls during the transition period. Compensation under the GST (Compensation to States) Act, 2017 is provisionally calculated and released every two months during a five year transition period; the base year for calculations is financial year 2015 16 and a projected nominal growth rate of 14% per annum is applied to subsumed revenues. Compensation payable in a financial year equals the difference between projected revenue and actual revenue collected by a State, and central disbursements were made to States/UTs for July 2017-March 2018 and April-May 2018 with state wise schedules. of Press 'Enter' after typing page number.
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