GST Compensation to States: Government releases Rs 36,400 Crore in big step to grant relief
GST Compensation: Narendra Modi Government has announced Rs 36,400 crore Goods and Service Tax (GST) Compensation to the respective states and Union Territories (UTs).
GST Compensation: In a bid to provide relief to the revenue starved states during COVID-19 lockdown, the Narendra Modi Government has announced Rs 36,400 crore Goods and Service Tax (GST) Compensation to the respective states and Union Territories (UTs). This GST compensation to states and UTs will help them meet their regular expenditures.
Informing about the GST compensation yesterday evening the Ministry of Finance said, "Taking stock of the current situation due to COVID-19 where State Governments need to undertake expenditure while their resources are adversely hit, the Central Government has released the GST Compensation of Rs.36,400 crore to the States/UTs with Legislature for the period from December, 2019 to February, 2020 today."
The Ministry of Finance statement further added that the GST Compensation of Rs 1,15,096 crore for period April-November, 2019 had already been released by the Central Government to the States/ UTs with Legislature.
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After the spread of Novel Coronavirus, the Indian Government had to impose lockdown across nation on 25th March 2020, which is still continuing with some ease in lockdown rules. During this period, petrol pumps and brewery business that generates majority of the state revenue got hit drastically. So, after the announcement of GST compensation, the state governments an the UTs will have some sigh of relief as it will enable them to meet their regular expenditures.
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