The center has yet to transfer £78,704 million in outstanding Goods and Services Tax (GST) balance payments to states, equivalent to four months of balance under the indirect tax regime introduced in July 2017, the Treasury said on Wednesday, citing ” insufficient balance sheet”. in the fund”.
“The outstanding amount is also released when the amount from the levy accrues in the compensation fund… Normally compensation for the ten months of April through January of each fiscal year is released during that year and compensation for February through March is only released in the next fiscal year.” ‘ the department said, noting that compensation for eight months out of 10 in 2021-22 has already been released to states.
So far, since the inception of GST, the Center has released 7.35 lakh crore to states, based on the Center’s pledge that states will be guaranteed 14% annual growth in revenue from subsumed state taxes in 2015-16 new tax regime. The remuneration period ends in June 2022.
