Image Source: businesstoday.in
On Tuesday, the Centre government releases the 19th instalment worth Rs 2,103 crore to compensate for the shortfall in the collection of GST. The compensation worth has been given to the states and UTs with legislative assemblies.
“Till now, 96% of the total estimated GST compensation shortfall has been released to the States & UTs with Legislative Assembly,” the Center informed.
The compensation is given to 23 states and 3 union territories as Arunachal Pradesh, Sikkim, Nagaland, Manipur and Mizoram do not have any shortfall in the collection of GST.
In October 2020, the Center gave two options for the compensation of the shortfall in the GST. One was Rs. 97,000 crores and another was Rs 2.35 lakh crores. The state chose the first option which the centre increased to Rs 1.1 lakh crore.