Current context: The Central Government has released 19,950 crore rupees as GST compensation to states/ Union Territories.
- 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
a. Three
b. Four
c. Five
d. Six
