Centre to release another Rs 34,000 cr compensation to states soon

In a bid to provide further relief to states amid the coronavirus outbreak, the finance ministry is planning to soon release another about Rs 34,000 crore to states as compensation for their revenue loss in the goods and services tax (GST) regime.

States, so far, have been paid pending dues till November and the remaining will be cleared in phases soon, sources said.

The finance ministry cleared about Rs 34,000 crore pending GST compensation for October and November in two tranches.

The first tranche of Rs 19,950 crore was released on February 17, while the remaining amount of Rs 14,103 crore was distributed to states and Union territories on Tuesday, sources added.

In all, Rs 34,053 crore were released at a time when states are facing liquidity crunch due to the nationwide lockdown imposed to contain spread of coronavirus.

According to sources, the government has released close to Rs 1.35 lakh crore to states and union territories towards GST compensation cess.