Finance Minister Arun Jaitley has said that the central government has released a total of Rs 28,398 crore to states as Goods and Services Tax (GST) compensation for the July-December period of 2017, with Karnataka getting a major pie. He also said that states are protected from any loss of revenues arising from rollout of the new indirect tax regime under the GST law.
The government has lowered the indirect tax revenue collection forecast in the revised estimates by Rs 51,856 crore to Rs 8.75 lakh crore in FY18. As per the Union Budget estimates, over Rs 9.26 lakh crore was to be collected from indirect taxes.
During July-December 2017, Rs 4,130 crore has been released to Karnataka as compensation, followed by Rs 2,838 crore to Punjab, Rs 2,532 crore to Gujarat, Rs 2,119 to Bihar, Rs 1,911 crore to Rajasthan and Rs 1,520 crore to Uttar Pradesh, among various states.