No GST Dues Pending For Release To States, Centre's Response Informs Lok Sabha

In a written response to the Lok Sabha, Minister of State for Finance Shri Pankaj Chaudhary clarified that the government has released Rs. 2,01,195 crore of GST compensation to States and Union Territories for the period 1 July 2017 to 30 June 2022.

He further confirmed that no GST dues are currently pending for release to the States, except for Arunachal Pradesh and Manipur, where final payments remain on hold due to the non-receipt of the required Accountant General (AG) certificates.

The Finance Ministry also provided State-wise gross GST collections and detailed the entire GST compensation paid to States for loss of revenue following the implementation of the Goods and Services Tax (GST). Over the five-year period, Maharashtra received the largest share totalling Rs. 35,243 crore, followed by Karnataka (Rs. 21,482 crore) and Tamil Nadu (Rs. 20,789 crore). The Centre also released Rs. 8051 crore to Kerala.

With the introduction of GST, the government subsumed all State-level taxes, including value added tax, sales tax, purchase tax, works contract tax, entertainment duty, and octroi, into a single, unified system.

To compensate States for potential revenue losses, the government enacted the GST (Compensation to States) Act, 2017, which guaranteed five years of compensation based on the difference between actual GST collections and the projected 14% annual growth, using 2015–16 as the base year.

The Ministry also highlighted the growth in GST collections, noting that total gross GST revenue (including CGST, SGST, IGST, and imports) rose from approximately Rs. 13.75 lakh crore in FY 2021-22 to over Rs. 20.55 lakh crore in FY 2024-25, with Maharashtra, Gujarat, Karnataka, and Tamil Nadu being the top contributors.

Based on audited figures, the government has released the final reconciled GST compensation for FY 2017–18 through FY 2022–23 for nearly all States and Union Territories. The Ministry emphasised that, since all admissible dues have been settled, payment delays do not affect development expenditure.

A detailed state-wise and year-wise analysis also identifies the top recipients of compensation over the last three financial years (2022–23, 2023–24, and 2024–25). The table below reflects the final reconciled amounts.