As of September 2021, the states owed about Rs 52,000 crore in GST compensation, Parliament was informed on Monday.
Minister of State for Finance Pankaj Chaudhary said in the Lok Sabha that as of November 24, 2021, Rs 1,10,208 crore and Rs 1.59 lakh crore have been issued to the states as back-to-back loans in the 2020-21 and 2021-22 fiscal years, respectively.
He said the total GST compensation outstanding until September 2021 was Rs 51,798 crore.
Maharashtra is owed Rs 13,153 crore, Uttar Pradesh is owed Rs 5,441 crore, Tamil Nadu is owed Rs 4,943 crore, Delhi is owed Rs 4,647 crore, and Karnataka is owed Rs 3,528 crore. The states of Arunachal Pradesh, Manipur, Mizoram, and Nagaland have yet to receive any GST reimbursement from the federal government.
In response to a related query, Chaudhary stated that on November 3, 2021, the Centre released Rs 17,000 crore from the compensation pool for GST compensation to states. This comes on top of Rs 43,303 crore in GST compensation for states and Rs 1.59 lakh crore in back-to-back assistance during the current fiscal year.
The compensation fund is created by levying a cess on top of the highest tax bracket on luxury, demerit, and sin goods.
The states have already received GST compensation for the fiscal years 2017-18, 2018-19, and 2019-20.
According to Chaudhary, the pandemic's economic impact has resulted in a larger compensation requirement due to decreased GST collection and, at the same time, lower GST compensation cess collection.