Maharashtra gets ₹3,054 towards GST compensation; pending dues still over ₹19,000 crore

Even as Maharashtra received the highest chunk — ₹3,054 crore of the ₹17,000 crore — released by the Centre to states towards the goods and services tax (GST) compensation on Wednesday, the pending compensation with the Centre is still more than ₹19,000 crore

Published on: Nov 3, 2021, 22:17:00 IST

By Surendra P Gangan, Mumbai

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Even as Maharashtra received the highest chunk — ₹3,054 crore of the ₹17,000 crore — released by the Centre to states towards the goods and services tax (GST) compensation on Wednesday, the pending compensation with the Centre is still more than ₹19,000 crore. The state has been the largest contributor to GST collection in the country.

The state received ₹3054 crore, its second instalment of compensation, in the current financial year. The compensation is highest among all states and union territories. Gujarat and Tamil Nadu stand in the second and third positions in the list to get the compensation of ₹1,428 and ₹1,417 crore respectively.

The states had raised a demand for the compensation of losses in GST. Maharashtra had demanded ₹9,130 and ₹9,535 crore compensation for April-May and June–July, respectively in 2021. Against it, the Centre has released ₹3,946 crore in September, besides the second instalment released on Wednesday.

“Besides the demand raised by the state government in the current financial year, the Centre owes ₹1,029 crore and ₹24,305 crore to us towards the pending compensation in 2019-20 and 2020-21, respectively. The total comes to ₹43,999 crore, of which, we have received ₹6,999 in two instalments, while we have raised the back-to-back loan of ₹13,782 crore, repayable by the Centre in lieu of shortfall in the GST compensation. This means the pending compensation with the Centre is ₹19,104 crore. If the compensation for the two more months — August and September — is added to it, the dues will go up to more than ₹28,000 crore,” said an official from the finance department.

State’s contribution in first seven months until October has been ₹56,946 crore against its estimated GST collection of ₹13,392 crore in 2021-22.

ABOUT THE AUTHOR
Surendra P Gangan
Surendra P Gangan is Senior Assistant Editor with political bureau of Hindustan Times’ Mumbai Edition. He covers state politics and Maharashtra government’s administrative stories. Reports on the developments in finances, agriculture, social sectors among others.Read More

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