The middle has taken steps to offer extra reduction to the states amidst the coronavirus outbreak. The Ministry of Finance will quickly present Goods and Services Tax (GST) as compensation to 34,000 crore states. It is being given to make up for his or her income deficit. Sources stated that until now the dues until November have been paid and the steadiness can be cleared in phases quickly.
The Finance Ministry authorized the pending GST compensation of Rs 34,000 crore in two installments for October and November. According to a report, the sources stated that the primary installment of 19,950 crore was launched on February 17, whereas the remaining 14,103 crore was disbursed to the states and union territories on Tuesday.
In all, 34,053 crores have been launched at a time when the states are going through a scarcity of liquidity because of the lockdown imposed to forestall the unfold of corona virus. <! –
According to sources, the federal government has launched round Rs 1.35 lakh crore for GST compensation cess to the states and union territories.
Under the GST Act, states have been assured to pay for any lack of income within the first 5 years of GST implementation, which got here into pressure from 1 July 2017.
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