<h1>Central Government Clears Rs. 2.78 Lakh Crore GST Compensation for 2020-21; Rs. 78,704 Crore Pending for 2021-22.</h1> The central government has released Rs. 2.78 lakh crore in GST compensation to States and Union Territories for the fiscal year 2020-21, with no pending dues for that year. Overall, Rs. 7.35 lakh crore has been disbursed, with only Rs. 78,704 crore pending for 2021-22, equivalent to four months of compensation. This delay is due to insufficient funds in the compensation pool, which is replenished through a cess on certain goods. The GST Compensation to States Act mandates compensation for revenue losses due to GST implementation, ensuring states receive funds to manage fiscal challenges, including those from the COVID-19 pandemic.