GST compensation cess | Centre staring at Rs 63,200 crore shortfall: Report
The report said compensation cess collections are expected to be Rs 96,800 crore.
December 24, 2019 / 04:02 PM IST
With the slugfest over delayed compensation cess showing no signs of reaching a definitive conclusion, it has now emerged that the Centre is facing a Rs 63,200 crore shortfall in GST compensation cess collections, according to a report in The Economic Times.
The compensation requirement for states is estimated at Rs 1.6 lakh crore in FY20, a 5 percent increase, the report said. But compensation cess collections are expected to be Rs 96,800 crore. Compensation cess collected in 2018-19 was Rs 95,081 crore.
Moneycontrol could not independently verify the report.
Rating agency ICRA estimates GST compensation shortfall of Rs 2.2 lakh crore for states. It pegged GST compensation for nine states alone at Rs 60,000-70,000 crore. The states mentioned in ICRA’s report are Karnataka, Kerala, Gujarat, Maharashtra, Punjab, Haryana, Rajasthan, Tamil Nadu and West Bengal.
Two days before the GST Council's meet, the Centre had released Rs 35,298 crore to states and union territories as compensation cess.
GST collections have been subdued in 2019 with the November collection crossing the Rs 1 lakh crore mark after three months.