The Union government has paid total Rs 52,077 crore as Goods and Services Tax (GST) compensation to the States/UTs during the period from July, 2017 to May, 2018, for the reported revenue deficit on account of implementation of GST.
As per the Ministry of Finance, States/UTs have been paid GST Compensation of Rs 48178 crore for the period of July 2017 to March, 2018 and Rs 3899 crore for the period of April-May, 2018. It also listed the States/UTs which has received GST Compensation during April- May, 2018 such as Bihar (received Rs 325 crore), Chhattisgarh (Rs 257 crore), Goa (Rs 28 crore), Gujarat (Rs 174 crore), Himachal Pradesh (Rs 225 Crore) , J & K (Rs 147 crore), Jharkhand (Rs 76 crore), Karnataka (Rs 792 crore), Kerala(Rs 67 crore), Madhya Pradesh (Rs 130 crore), Odisha (Rs 282 crore), Puducherry (Rs 79 crore), Punjab (Rs 944 crore), Rajasthan (Rs 106 crore), Tripura (Rs 2 crore) and Uttarakhand (received Rs 265 crore).
As per provisions in Section 7 of the GST (Compensation to States) Act, 2017 loss of revenue to the States on account of implementation of Goods and Services Tax shall be payable during transition period and compensation payable to a State shall be provisionally calculated and released at the end of every two months during transition period of 5 years.