AP Receives Rs 879 Crore GST Compensation From Centre

https://english.sakshi.com/news/andhrapradesh/ap-receives-rs-879-crore-gst-compensation-centre-156247NEW DELHI: The Union Finance Ministry has released the Goods and Services Tax (GST) compensation fund. As part of its share, the state of Andhra Pradesh has received Rs 879.08 Crore pending for the month of June.

AP along with 14 states are slated to receive Rs 7,183.42 as part of its share from the Rs 10,549 Crore which will be released by the Finance ministry for the Financial Year 2022-23, as per reports in the Sakshi Telugu Newspaper reported on 07-06-2022.

Last month the Union Government cleared the entire GST Compensation due till the 31st of May. Of this, Rs 25,000 crore was released from the GST compensation fund and the balance Rs 61,912 crore is being released by the Centre from its own resources pending collection of cess. Of the total compensation released, Rs 17,973 crore is towards April and May dues, Rs 21,322 crore towards February-March dues and Rs 47,617 crore is the balance of compensation payable up to January 2022.

This decision was taken to assist the states in managing their resources and ensuring that their programmes especially the expenditure on capital is carried out successfully during the financial year, the ministry said in a statement. As the states' protected revenue has been growing at 14 per cent compounded growth whereas the cess collection did not increase in the same proportion, COVID-19 further increased the gap between protected revenue and the actual revenue receipt including a reduction in cess collection.

In order to meet the resource gap of the states due to short release of compensation, the Centre has borrowed and released Rs 1.1 lakh crore in 2020-21 and Rs 1.59 lakh crore in 2021-22 as back-to-back loans to meet a part of the shortfall in cess collection. In addition, the Centre has also been releasing regular GST compensation from the fund to meet the shortfall. 

With this release of Rs. 86,912 crore, the compensation to States till May 2022 gets fully paid and only compensation for June 2022 would remain and as part of the State-wise break, Andhra Pradesh received Rs 3,199 Crore.

Source from - https://english.sakshi.com/news/andhrapradesh/ap-receives-rs-879-crore-gst-compensation-centre-156247