Gujarat FM Kanubhai Mohanlal Desai on GST Compensation: Central Govt. owes ₹ 9,136 Crore

The Central Government owes the Gujarat Government Rs 9,136 crore as compensation for income loss over the past two years under the provisions of the Goods & Services Tax (GST) Act, Gujarat Finance Minister (FM) Kanubhai Mohanlal Desai indicated in the Gujarat Assembly.

When the senior congressman wanted to know the compensation amount, the minister made the announcement. There is a five-year provision for compensation for income loss caused by the GST, the congressman said during the discussion. He questioned the finance minister about the state government's response to the revenue losses caused by the GST law after those five years had passed.

According to FM, the Central government owes the Gujarat government Rs 23,332 crore for the period from January 2021 to December 2021. Similar to this, the Union owes the state government Rs 7,068 crore for the months of January 2022 through June 2022. So, under the terms of the GST statute, Gujarat must recover Rs 30,400 crore from the Government as compensation for the last two years.

The state government must therefore recover Rs 9,136 crore from the Central Government, Desai remarked. He further mentioned that the central government would probably soon pay compensation in the amount of Rs. 3,377 crore.

Gujarat received Rs 3,364 crore on May 31, 2022, and Rs 855 crore on November 24, 2022, in response to that. The Gujarat government received a loan for compensation from the Central government for Rs 17,045 crore at the same time due to the decline in earnings brought on by the Covid-19 outbreak, with the understanding that repayment of the loan and interest will come from the Cess Fund.

Desai further stated that they have been discussing Ek Bharat, Shrehtha Bharat. The distribution of income resources must be fair if India is to fully flourish. In order to make the state independent, they have already taken a number of procedures, such as screening for duplicate registrations.

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