<h1>Government Settles GST Compensation Dues to States for 2020-21 and 2021-22, Ensures Financial Support Amid Pandemic Challenges.</h1> The government has settled all GST compensation dues to states for the financial years 2020-21 and 2021-22. The GST compensation cess is collected under the GST (Compensation to States) Act, 2017, and stored in the GST Compensation Fund. States are compensated for revenue losses due to GST implementation for five years. Due to the pandemic, compensation needs increased while collections decreased, leading to a Rs. 91,000 crore release for 2020-21. The central government borrowed Rs. 1.1 lakh crore and Rs. 1.59 lakh crore in subsequent years to support states, releasing Rs. 75,000 crore in July 2021. Regular compensation continues based on fund availability.