Center helps for Corona, will states get GST compensation?

GST, News Update


The Finance Ministry has released Rs 17,287 crore to the states amid Corona crisis. This will help the states to strengthen their financial resources.

  • Government released Rs 17,287 crore to states
  • Will help strengthen financial resources

For the past few days, the Indian government has intensified its war against the corona virus. Many such decisions have been taken by the government, including the relief package, which will help the common people a lot. With this, now the government has also released Rs 17,287 crore to the states.

The government has given this help at a time when some states have demanded their GST dues. Actually, recently Punjab Chief Minister Amarinder Singh has written a letter to Prime Minister Narendra Modi. He said in this letter that the amount of GST compensation of 6,752.83 crore has not been received since October last year. In the letter, Amarinder Singh appealed to PM Modi to direct Finance Minister Nirmala Sitharaman to release this amount soon.

Why get GST compensation

Significantly, GST accounts for about 60 percent of the total revenue of states. According to the agreement reached by the Center with the State Governments while implementing GST, the Central Government compensates the loss of revenue from it.

6,195 crores to 14 states

Explain that out of Rs 17,287 crore of the Center, Rs 11,092 crore has been given to the States for the State Disaster Response Relief Fund (SDRMF). At the same time, an amount of Rs 6,195 crore has been released to 14 states as ‘Distribution of Revenue Loss Grant’. These states are Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal.

Which state got what

In a tweet made by Finance Minister Nirmala Sitharaman’s office, it was stated that Andhra Pradesh is worth Rs 491.41 crore, Assam Rs 631.58 crore, Himachal Pradesh Rs 952.58 crore, Punjab Rs 638.25 crore and Uttarakhand Rs 423 crore, Kerala 1276.91 crore has been released.

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Similarly, an amount of Rs 37.33 crore was released to Sikkim. Apart from this, 14 states including Manipur, Meghalaya, Mizoram, Nagaland, Tamil Nadu, Tripura and West Bengal have been given a share. The remaining Rs 11,092 crore has been given to all states in the first installment of SDRMF as advance payment of the Centre’s share.

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Of this, Rs 1,611 crore has been released to Maharashtra, Rs 966 crore to Uttar Pradesh, Rs 910 crore to Madhya Pradesh, Rs 708 crore to Bihar, Rs 802 crore to Odisha, Rs 740.50 crore to Rajasthan and Rs 505.50 crore to West Bengal.

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