{"id":7894,"date":"2022-07-21T07:40:46","date_gmt":"2022-07-21T06:40:46","guid":{"rendered":"https:\/\/www.klickongstworld.com\/blog\/?p=7894"},"modified":"2022-07-21T07:59:13","modified_gmt":"2022-07-21T06:59:13","slug":"gst-compensation-to-states-for-loss-of-revenue-arising-on-account-of-implementation-of-gst-for-a-period-of-five-years","status":"publish","type":"post","link":"https:\/\/www.klickongstworld.com\/blog\/gst-compensation-to-states-for-loss-of-revenue-arising-on-account-of-implementation-of-gst-for-a-period-of-five-years\/","title":{"rendered":"GST compensation to States for loss of revenue arising on account of implementation of GST for a period of five years"},"content":{"rendered":"<p align=\"justify\">As per section 18 of the Constitution  (One Hundred and First Amendment) Act, 2016, Parliament shall, by law, on the  recommendation of the Goods and Services Tax Council, provide for compensation  to the States for loss of revenue arising on account of implementation of the  goods and services tax for a period of five years. <strong>This was stated by Union  Minister of State for Finance Shri Pankaj Chaudhary in a written reply to a  question in Rajya Sabha today.<\/strong>\n  <\/p>\n<p align=\"justify\">The Minister stated that the issue of  compensation to States\/UTs and augmenting resources under GST were discussed in  detail in the 45th GST Council meeting held in Lucknow. Consequent to the  decision of the Council, two Group of Ministers (GoMs), namely GoM on GST  System Reforms and GoM on Rate Rationalization have been constituted. GoM on  Rate Rationalization has submitted its interim report, recommending certain  inverted duty corrections and pruning of exemptions, which was discussed and  considered in the last GST Council meeting held at Chandigarh.\n  <\/p>\n<p align=\"justify\">As a result, the Minister stated, the  continued reforms in GST undertaken by Centre and States, on the  recommendations of the GST Council, buoyancy in GST revenue has been achieved  in the recent months. The average monthly gross GST collection for the first  quarter of the FY 2022-23 has been ?1.51 lakh crore against the average monthly  collection of ?1.10 lakh crore in the first quarter of the last Financial year  showing an increase of 37%, the Minister stated.\n  <\/p>\n<p align=\"justify\">The Minister stated that a few States  have requested for extension of payment of GST compensation beyond transition  period of five years.<br \/>\n  The Minister further stated that as  per Section 7 of the GST (Compensation to States) Act, 2017, the States are  required to be compensated for loss of revenue due to implementation of GST  (w.e.f. 01.07.2017) for 5 years period. During transition period, the States revenues are protected at 14% growth rate per annum over the base year revenue  (2015-16). Accordingly, the States are being compensated for any shortfall  against their protected revenue. The details of GST compensation due and  released to States\/ UTs for the year 2017-18 to 2022-23 is as per <a href=\"https:\/\/klickongstworld.com\/uploads\/doc202271971401.pdf\">ANNEXURE<\/a>.<\/p>\n<p align=\"center\"><strong><a href=\"https:\/\/klickongstworld.com\/uploads\/PIB1842755.pdf\">Klick here for the copy of  the Press Release<\/a><\/strong><a href=\"https:\/\/klickongstworld.com\/uploads\/PIB1842755.pdf\"> <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>2022\/07\/87009520_parliament.jpg<\/p>\n","protected":false},"author":1,"featured_media":7899,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/posts\/7894"}],"collection":[{"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/comments?post=7894"}],"version-history":[{"count":3,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/posts\/7894\/revisions"}],"predecessor-version":[{"id":7900,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/posts\/7894\/revisions\/7900"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/media\/7899"}],"wp:attachment":[{"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/media?parent=7894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/categories?post=7894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/tags?post=7894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}