Releasing of GST Compensation to States

Guidance for taxpayers in relation to GST

Pending introduction of GST in the Country, Union Cabinet in its meeting held on 17.03.2015, decided for payment of 100% GST compensation to the States/UTs for year 2010-11, 75% GST compensation for year 2011-12 and 50% GST Compensation for year 2012-13 to be worked out as per guideline dated 22.08.2008.

Accordingly, full GST compensation for year 2010-11 and 2011-12 has been released to the States during FY 2014-15 & 2015-16. Rs.11709.4 cr. GST compensation is admissible to States/UTs for year 2012-13. Out of which 1st installment of GST compensation amount Rs.5854.73 cr. has been released to the States/UTs in July, 2016. Balance amount of Rs. 5854.69 cr. GST compensation for year 2012-13 is proposed to be released during current FY. This is the final payment of GST compensation to the States/UTs.

This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

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