NEW DELHI : The central government has paid Rs19,950 crore on Monday to states as compensation for their revenue loss in the goods and services tax (GST) regime, said a government official. Including this, the Narendra Modi administration has paid over Rs1.2 trillion towards GST compensation to states and union territories, said the official, who spoke on condition of anonymity. The compensation payment made is more than what has been collected so far this year by way of the cess on certain luxury goods and tobacco amounting to Rs78,874 crore. Timely GST compensation payment to states had recently become a thorny issue between union and state governments affecting their mutual trust as revenue collections got affected by the economic slowdown. The central government has a target of collecting Rs1 trillion in GST cess in the current fiscal.

Source: Mint February 20, 2020 15:22 UTC