New Delhi: The central government has released Rs 48,202 crore as GST compensation to states during April-November 2018, higher than the Rs 48,178 crore paid in the previous financial year.
Minister of State for Finance Shiv Pratap Shukla said Section 7 of the GST (Compensation to States) Act, 2017, states that compensation payable to a state for loss of revenue shall be provisionally calculated and released at the end of every two months.
"Rs 48,178 crore and Rs 48,202 crore have been released as GST compensation to states/UTs for the FY2017-18 and FY2018-19 (April 2018 to November 2018), respectively," Shukla said.
The goods and services tax (GST) was rolled out on July 1, 2017. As per the GST law, the Centre compensates states to ensure that their revenue is protected at the level of 14 percent over the base year tax collection in 2015-16.