Election Day- Use Code DEMOCRACY24

Register Now

Centre Released Rs 19,950 Cr GST Compensation to States/UTs

Published on February 21, 2020
Current context: The Central Government has released 19,950 crore rupees as GST compensation to states/ Union Territories. 
Centre Released Rs 19,950 Cr GST Compensation to States/UTs
  • With this release of GST compensation, the Central government has released a total amount of over Rs 1.20 lakh crore towards GST compensation to the states during current fiscal.
  • As per Ministry of Finance, total GST compensation cess of Rs 62,611 crore was collected in the FY 2017-18, out of which Rs 41,146 crore was released to the states/UTs that fiscal as GST compensation.
  • In FY 2018-19, Rs 95,081 crore was collected as GST compensation cess of which Rs 69,275 crore was released to the states/UTs as GST compensation.
  • In December 2019, the Centre had released Rs 35,298 crore to states to compensate for the revenue loss on account of GST rollout.
  • Under GST law, states were guaranteed to be paid for any loss of revenue in the first five years of GST implementation (that came into force from July 1, 2017).
  • Accordingly, the Centre would compensate states for shortfall in GST collections as per a defined formula.

Question: 

Q: 1: Under GST law, states were guaranteed to be paid for any loss of revenue in the first __________ years of GST implementation? 
a. Three
b. Four
c. Five
d. Six
ebook store

About us

ramandeep singh

Ramandeep Singh, your guide to banking and insurance exams. With 14 years of experience and 5000+ selections, Ramandeep understands the path to success, having transitioned himself from Dena Bank and SBI. He's passionate about helping you achieve your banking and insurance dreams.

  • Follow me:
Close Menu
Close Menu