Ahmedabad: Reflecting major shortages in tax collection, Gujarat is still awaiting GST compensation of Rs 10,186 Crore from the center for the period from April 2020 to 2021.
The data issued by the Ministry of Finance Union shows that at 20-21, GST compensation for RS Nada 6,583 Crore remains delayed for permission from the center.
In addition, RS 3,603 Crore is caused by permission for the April-May 2021 period.
Constitutional amendments make countries drive less than 14% year-on-year growth in the GST collection they qualify for compensation for the loss of income, for a period of five years from 2017-2022.
This is done because some state levies are announced under public taxes.
Because of the fund deficit, compensation for RS 1,36 lakh crore tones have not been provided by the center to various countries.
“GST compensation from RS 91,000 Crore has been released to all states / UTS to partly fulfill compensation debt for that period [of] April 2020 to March 2021 because the amount in the GST compensation fund is inadequate to meet the full compensation requirements,” said the response to the question In parliament submitted by the Ministry of Finance Union.
Higher the amount of compensation maturity, deeper is the lack of tax collection.
Gujarat recorded a total GST collection of Rs 34,561.34 Crore in 2020-21, down 3.75% against the 2015-20 RS 35,908.64 Crore collection.
Tax collection drops due to the locking of a pandemic induced and slow recovery in demand.
Gujarat has a fourth highest compensation amount that is delayed from the center after Maharashtra (RS 23,133 Crore); Karnataka (Rs 12,702 Crore) and Uttar Pradesh (Rs 11,157 Crore).
Being a manufacturing-oriented country, Gujarat was confused when it came to the GST collection compared to the conditions in the previous tax regime.
All state manufacturing has been looking for the highest compensation from the center.
The source said that the lack of tax collection and pending compensation would have an impact on state expenditure on future days.
Guj Waiting for Rs 10,000 Crore in GST Compensation
