The Government has paid GST Compensation to the States/UTs for the reported revenue deficit on account of implementation of Goods and Services Tax (GST). As per provisions in Section 7 of the GST (Compensation to States) Act, 2017 loss of revenue to the States on account of implementation of Goods and Services Tax shall be payable during transition period and compensation payable to a State shall be provisionally calculated and released at the end of every two months during transition period of 5 years.
As per Section 4 of the said Act, financial year 2015-16 has been taken as the base year for calculating compensation amount payable to States for loss of revenue during transition period. The projected nominal growth rate of revenue subsumed for a state during the transition period shall be 14% per annum.
As per section 7(c) of the said Act, the total compensation payable in any financial year shall be difference between the projected revenue for any financial year and the actual revenue collected by a State. On this basis, the revenue loss due to implementation of GST to the states for the month of July, 2017 to March, 2018 and April to May, 2018 has been estimated to be Rs. 48178 crore (Annexure-I) and Rs. 3899 crore (Annexure-II) respectively and accordingly, States/UTs have been paid GST Compensation of Rs. 48178 crore for the period of July 2017 to March, 2018 and of Rs. 3899 crore for the period of April-May, 2018.
Details of GST Compensation released to States/ UTs for FY 2017-18.
| GST | GST | GST | GST | GST | ||||
| compensat | compens | compens | ||||||
| compensati | compensati | |||||||
| S. | ion | ation | ation | Total (Rs. | ||||
| on released | on released | |||||||
| Name of | released | released | released | In Crore) | ||||
| No. | for July and | for Sep and | ||||||
| State/UT | for Nov | for Jan | for March | |||||
| Aug 2017 | Oct 2017 | |||||||
| and Dec | and Feb | 2018 (Rs. | ||||||
| (Rs. in | (Rs. in | |||||||
| 2017 (Rs. | 2018 (Rs. | in Crore) | ||||||
| Crore) | Crore) | |||||||
| in Crore) | in Crore) | |||||||
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | |
| Andhra | ||||||||
| 1 | Pradesh | 116 | 266 | 0 | 0 | 0 | 382 | |
| 2 | Arunachal | |||||||
| Pradesh | 15 | 0 | 0 | 0 | 0 | 15 | ||
| 3 | Assam | 338 | 331 | 15 | 202 | 94 | 980 | |
| 4 | Bihar | 692 | 1054 | 373 | 922 | 99 | 3140 | |
| 5 | Chhattisgarh | 253 | 562 | 219 | 449 | 106 | 1589 | |
| 6 | Delhi | 115 | 42 | 0 | 0 | 169 | 326 | |
| 7 | Goa | 68 | 35 | 99 | 50 | 29 | 281 | |
| 8 | Gujarat | 1402 | 880 | 252 | 1153 | 590 | 4277 | |
| 9 | Haryana | 476 | 325 | 0 | 398 | 262 | 1461 | |
| Himachal | ||||||||
| 10 | Pradesh | 0 | 0 | 539 | 336 | 184 | 1059 | |
| 11 | J & K | 367 | 314 | 127 | 329 | 23 | 1160 | |
| 12 | Jharkhand | 313 | 489 | 94 | 369 | 103 | 1368 | |
| 13 | Karnataka | 1189 | 2082 | 859 | 2116 | 1289 | 7535 | |
| 14 | Kerala | 810 | 395 | 0 | 567 | 330 | 2102 | |
| Madhya | ||||||||
| 15 | Pradesh | 433 | 908 | 0 | 1170 | 157 | 2668 | |
| 16 | Maharashtra | 0 | 834 | 0 | 654 | 1589 | 3077 | |
| 17 | Manipur | 24 | 0 | 0 | 0 | 0 | 24 | |
| 18 | Meghalaya | 52 | 38 | 20 | 14 | 16 | 140 | |
| 19 | Mizoram | 0 | 0 | 0 | 0 | 0 | 0 | |
| 20 | Nagaland | 0 | 0 | 0 | 0 | 0 | 0 | |
| 21 | Odisha | 333 | 687 | 306 | 693 | 245 | 2264 | |
| 22 | Puducherry | 44 | 122 | 58 | 109 | 52 | 385 | |
| 23 | Punjab | 1138 | 960 | 740 | 1199 | 581 | 4618 | |
| 24 | Rajasthan | 1205 | 706 | 0 | 687 | 301 | 2899 | |
| 25 | Sikkim | 0 | 0 | 0 | 6 | 0 | 6 | |
| 26 | Tamil Nadu | 530 | 102 | 0 | 0 | 0 | 632 | |
| 27 | Telangana | 7 | 162 | 0 | 0 | 0 | 169 | |
| 28 | Tripura | 31 | 43 | 14 | 41 | 20 | 149 | |
| 29 | Uttar Pradesh | 190 | 1330 | 0 | 604 | 308 | 2432 | |
| 30 | Uttarakhand | 223 | 460 | 183 | 417 | 149 | 1432 | |
| 31 | West Bengal | 441 | 567 | 0 | 600 | 0 | 1608 | |
| Total | 10805 | 13694 | 3898 | 13085 | 6696 | 48178 |
Details of GST Compensation released to States/UTs for FY 2018-19
| GST compensation released | ||
| S. No. | Name of State/UT | for April- May, 2018 (Rs. in |
| Crore) | ||
| (1) | (2) | (3) |
| 1 | Andhra Pradesh | 0 |
| 2 | Arunachal Pradesh | 0 |
| 3 | Assam | 0 |
| 4 | Bihar | 325 |
| 5 | Chhattisgarh | 257 |
| 6 | Delhi | 0 |
| 7 | Goa | 28 |
| 8 | Gujarat | 174 |
| 9 | Haryana | 0 |
| 10 | Himachal Pradesh | 225 |
| 11 | J & K | 147 |
| 12 | Jharkhand | 76 |
| 13 | Karnataka | 792 |
| 14 | Kerala | 67 |
| 15 | Madhya Pradesh | 130 |
| 16 | Maharashtra | 0 |
| 17 | Manipur | 0 |
| 18 | Meghalaya | 0 |
| 19 | Mizoram | 0 |
| 20 | Nagaland | 0 |
| 21 | Odisha | 282 |
| 22 | Puducherry | 79 |
| 23 | Punjab | 944 |
| 24 | Rajasthan | 106 |
| 25 | Sikkim | 0 |
| 26 | Tamil Nadu | 0 |
| 27 | Telangana | 0 |
| 28 | Tripura | 2 |
| 29 | Uttar Pradesh | 0 |
| 30 | Uttarakhand | 265 |
| 31 | West Bengal | 0 |
| Total | 3899 |
This was stated by Shri Shiv Pratap Shukla, Minister of State for Finance in a Written reply to a question in Lok Sabha today.
