Mumbai, December 24: The government is looking at a shortfall of Rs 63,000 crore in GST compensation payout to states during FY20 and this could severely affect the funds flow in the country. According to an Economic Times report, delay in the release of compensation to states has already a reason for debate between Centre and states.
Reportedly, the compensation cess collection for FY 2018-19 was Rs 95,081 crore, just marginally lower than Rs 96,800 crore which is expected this fiscal ending March 2020. The centre had rolled out Rs 35,298 crore as compensation to states for August and September period just two days ahead of the GST Council meeting on December 18. Finance Ministry Issues Guidelines For Revenue Dept Officers, Asks Them to Boost Monthly GST Collection to Rs 1.1 Lakh Crore.
Last week, the centre sanctioned the release of Rs 2,228 crore as grant-in-aid against the pending GST arrears of the Punjab government since August 2019, said Chief Minister's Office, Punjab. According to an ANI report, the amount released was aimed at compensating the Punjab government for the loss of revenue for the months of August and September 2019, on account of implementation of GST.
The Finance Ministry had set a Rs 1.1 lakh crore monthly GST collection target for the remaining four months of 2019-20 financial year.
(The above story first appeared on LatestLY on Dec 24, 2019 09:10 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).