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Centre releases Rs 96,576 crore to states as GST compensation

ANI | Updated: Mar 25, 2022 14:49 IST

New Delhi [India], March 25 (ANI): The Union Finance Ministry has released Rs 96,576 crore to states and Union Territories (UTs) so far this year to meet the revenue shortfall on account of the implementation of Goods and Services Tax (GST).

The states and UTs have also been provided an additional Rs 1.59 lakh crore as a back-to-back loan, Union Finance Minister Nirmala Sitharaman informed the Rajya Sabha recently.

According to the minister, Rs 53,661 crore is yet to be released to the states as GST compensation for the current financial year.

As part of the implementation of the new tax regime, the centre has agreed to compensate the states and Union Territories (UT) with Legislative Assembly for any loss in revenue.

The Goods and Services Tax (GST) regime was implemented on 1 July 2017. The centre has agreed to compensate the revenue shortfall for the first five years of the implementation.

On consistent demands from the states, the Government of India has agreed to extend the GST compensation cess till March 2026. (ANI)