Gujarat Awaits Rs 8,400 cr GST Compensation from Centre

Gujarat is still to receive GST compensation of Rs 8,400 crore from the Centre, according to data provided by state commercial tax department. Estimates by the state government suggest that Gujarat will be eligible for compensation estimated at Rs 23,200 crore by the end of 2020-21.

Speaking to the press after the state budget announcement on Wednesday, state commercial tax commissioner J P Gupta said, "The shortfall on GST compensation is expected to be around Rs 23,200 crore on an average by the end of this financial year. This is primarily due to shortfall in GST collection due to slowed economic activity followed by the pandemic-induced lockdown and gradual recovery in economic and commercial activities."

GST compensation is usually cleared by the Centre from its cess fund. "However, due to short-collection in cess, the centre has released only Rs 6,000 crore from the cess fund to Gujarat. Over and above this, a sum of Rs 9,200 crore has been sanctioned for the state through a loan. Of this, we have received Rs 8,800 crore and the remaining Rs 400 crore is pending but will soon be released," said Gupta.

This means, the state has received 14,800 crore through loan and cess fund.