The central government has released Rs 17,000 crore to states/ UTs towards the balance GST compensation for the April-June 2022 period. With this, the total amount of compensation released to the states/ UTs so far during the year 2022-23 is Rs 1,15,662 crore, the finance ministry said on Friday.
The total cess collection till October 2022 is only Rs 72,147 crore and the balance of Rs 43,515 crore is being released by the Centre from its own resources. With this release, the Centre has released, in advance, the entire amount of cess estimated to be collected this year till March-end available for payment of compensation to states.
“This decision was taken to assist the States in managing their resources and ensuring that their programmes especially the expenditure on capital is carried out successfully during the financial year,” the Ministry of Finance said in a statement.
In May this year, the Centre had released Rs 86,912 crore as provisional GST compensation to states for the February-May 2022 period despite the fact that there was only about Rs 25,000 crore in the GST compensation fund, by making arrangements of funds of around Rs 62,000 crore from its own resources.
The highest amount of Rs 2,081 crore was granted to Maharashtra during the April-June 2022 period, followed by Karnataka (Rs 1,915 crore), Uttar Pradesh and Delhi (about Rs 1,200 crore each), Tamil Nadu (Rs 2,081 crore) and Punjab Rs 984 crore.
In October, GST revenues rose 16.6 per cent to about Rs 1.52 lakh crore, making it the second-highest collection ever. Goods and Services Tax (GST) collection had touched a record high of nearly Rs 1.68 lakh crore in April. In October last year, the revenues stood at over Rs 1.30 lakh crore.
The gross GST collected in the month of October 2022 is Rs 1,51,718 crore of which Central GST is Rs 26,039 crore, State GST is Rs 33,396 crore, Integrated GST is Rs 81,778 crore (including Rs 37,297 crore collected on import of goods) and Cess is Rs 10,505 crore (including Rs 825 crore collected on import of goods), which is second highest till date.
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