Union Finance Minister Nirmala Sitharaman said on February 18 that the entire outstanding GST (goods and services tax) compensation cess dues to states for the five-year period will be cleared, with the payment of Rs 16,982 crore remaining for June 2022 and an additional Rs 16,524 crore to six states.
"Entire GST compensation cess pending to the tune of Rs 16,982 crore for June 2022 will be cleared. With the release of pending GST compensation cess, all provisional amount pending would have been cleared," Nirmala Sitharaman said while addressing the media on the outcomes of the 49th GST Council meeting in New Delhi.
The Centre will also clear an additional Rs 16,524 crore, which is the admissible final GST compensation to six states who have provided the revenue figures as certified by the accountant general. However, there are a few more states remaining whose dues will be cleared as and when they submit the AG’s certificate, she said.
Read all updates from the 49th GST Council Meeting here
"We also released Rs 16,524 crore to six states based on the AG certificates we have received," said Sitharaman. "We will continue clearing any pending compensation cess amounts of states as and when they give their AG certificates. But even when in cases AG certification has not been received, we have released 90 percent of the monthly compensation cess amount. When we get the AG certification from the states, we will reconcile the remaining amount and release it to the states."
Revenue Secretary Sanjay Malhotra added, "For June 2022, 50 percent of the provisional GST compensation cess amount was released earlier. Now, we are releasing 50 percent amounting to Rs 16,982 crore. This will be from the funds of the Centre, which will be recouped later from the cess."
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In today's meeting, the GST Council also reviewed a number of issues, including the establishment of appellate tribunals, methods to prevent tax evasion in the pan masala and gutkha industries, rationalisation of fines for filing annual GST Returns late, and lowering the GST rate on items like rab, pencil sharpeners, among others.
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