VIJAYAWADA: Union Finance Minister Nirmala Sitharaman said that Rs 689 crore was pending to Andhra Pradesh as GST compensation for the period between April and June, 2022.
This pending amount would be released from the Compensation Fund wherein monthly cess collection was being transferred and credited.
The Union Minister was replying to a question raised by YSRC MP Vallabhaneni Balashowry in the Lok Sabha on when the pending GST compensation amount would be released by the Centre to the State.
Sitharaman said, “As per the provision of GST (Compensation to States) Act, 2017 and taking into account Rs 1.10 lakh crore for financial year 2020-21 and Rs 1.59 lakh crore for 2021-22 released to States as back to back loans in the lieu of GST compensation, the entire GST compensation of all the States and Union Territories, including Andhra Pradesh has been cleared by the Centre up to May 31, 2022.”
“Taking into account the loan of Rs 2,311 crore in financial year 2020-21 and Rs 3,272 crore in 2021-22 released to Andhra in the lieu of GST compensation and release of bimonthly GST compensation from July, 2017 to June, 2022, only Rs 689 crore was pending to the State as GST compensation for April-June, 2022,” the Finance Minister elaborated.
‘Centre to pay Rs 689 cr to AP’
On the question that whether almost all States have reportedly demanded for extending the period of GST compensation for five more years and the the issue of extension of GST compensation period has been placed before the GST Council, Sitharaman said that a few States have requested for extension of payment of GST compensation beyond transition period of five years.
“As per section 18 of the Constitution (One Hundred and First Amendment) Act, 2016, compensation to the States for loss of revenue arising on account of implementation of the goods and services tax can be provided for a period of five years. Central Government is committed for payment of GST compensation to States/UTs for five years as per law enacted by the Parliament according to the Constitutional provision,’’ she said.