New Delhi: While Union Finance Minister Nirmala Sitharaman has announced that the GST compensation to the states will be settled, Kerala will get Rs 780 crore. The minister informed that the amount to be received by the states will be allowed in full in the 49th GST Council meeting. The Center has allocated Rs 16,978 crore for this. Out of this, Kerala's share is Rs 780 crore.
Maharashtra has to pay the highest amount in GST compensation – Rs 2,102 crore. Karnataka, which is just behind, will get Rs 1,934 crore and Uttar Pradesh will get Rs 1,215 crore. Puducherry has the least amount to pay – Rs 73 crore. GST came into effect in 2017. The Center had assured that the states would be reimbursed for the revenue loss incurred due to the implementation of the tax for a period of 5 years. States were compensated through cess levied on products. It ended in June. At the same time, despite requests by states including Kerala, no decision was taken to extend the GST compensation period
GST was implemented in 2017, and the Center had assured states that they would be reimbursed for revenue loss incurred due to the implementation of the tax for a period of five years. States were compensated through a cess levied on products, which ended in June. However, despite requests from several states, including Kerala, no decision had been made to extend the GST compensation period.
The decision to settle the GST compensation comes as a relief to several states that have been struggling with revenue loss since the cess was discontinued in June. The announcement is expected to help the states boost their revenue streams and aid in their financial recovery.