Centre releases GST compensation worth Rs 35,298 crore to states for Aug, Sep: Report

The Centre, on December 16, released Rs 35,298 crore as Goods and Services Tax (GST) compensation to the states for August and September, CNBC-TV18 reports.

The GST Council is expected to take into consideration the broadening of the tax base and resource mobilisation when it meets on December 18. It is also expected to deliberate on an alternate mechanism for the compensation cess, while also looking at ways to boost revenue from indirect taxes.

Last week, Finance Minister Nirmala Sitharaman said that the Centre would honour its commitment, and no one should have any doubts. However, she did not respond to queries regarding the date by when dues to the states would be cleared.

Earlier this month Sitharaman also met the finance ministers of various states, who expressed concerns that a delay in the release of GST compensation would put them in a precarious financial position. On December 14, the Shiv Sena warned of a confrontation between states and the Centre if the government fails to pay the GST compensation.