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The Union finance ministry said on Wednesday that Rs 78,704 crore of compensation was due to the States in lieu of goods and services tax (GST) for financial year 2021-22 (FY22), which is equivalent to the compensation of four months.
It added that all dues had been paid for the FY21. So far, it has released Rs 7.35 trillion to States, including the assistance released on back-to-back basis. For FY22, compensation is pending due to inadequate balance in the fund, the ministry said. It added that there are no dues pending for FY21, as total compensation of Rs 2.78 trillion was released to the States during the year. Normally, compensation for the 10 months from April of any financial year is released during that year and the compensation of February and March is released in the next financial year.
Compensation of eight out of the 10 months of FY22 has already been released to States. The pending amount will also be released as and when the amount from cess accrues in the compensation fund, the ministry stated.
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