Government Releases ₹35,298 Crores GST Compensation To States, UTs After Delay

The central government released about ₹35,298 crores as pending compensation to states and union territories on Monday, after payments had not been given for two months slot. The states had said that the delay in payment has hindered their development work and affected finances. Finance Minister Nirmala Sitharaman said that the delay was due to a “slippage” in collections.

“The central government has released GST compensation of ₹35,298 crore to States and Union Territories today,” Central Board of Indirect Taxes and Customs (CBIC) said in a tweet.

Speaking at an event earlier in the day, Finance Minister Nirmala Sitharaman sought to assure the States that the Centre would not renege on its promise to compensate them and explained that the delay was because GST collections had been lower than expected.

She attributed the dip in collections to a slip in GST filing due to natural calamities and also due to a slowdown in consumption that has a direct impact on the collections.