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Taking stock of the current situation due to COVID-19 where State Governments need to undertake expenditure while their resources are adversely hit, the Central Government has released the GST Compensation of ₹ 36,400 crore to the States/UTs with Legislature for the period from December, 2019 to February, 2020 today.
The GST Compensation of ₹ 1,15,096 crore for period April-November, 2019 had already been released by the Central Government to the States/ UTs with Legislature.
GST compensation release supports state fiscal needs during COVID-19 by disbursing funds to legislatures for service delivery. The Central Government disbursed a tranche of GST Compensation funds to States and Union Territories with Legislatures-Rs. 36,400 crore for December 2019 to February 2020-following an earlier release of Rs. 1,15,096 crore for April-November 2019, aimed at offsetting revenue shortfalls and supporting State/UT expenditure during the COVID-19 fiscal impact.
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