Last updated: March 25, 2024

Previous Congress government didn't present the proper records, leading to Rs. 3900 cr reverse claim by Central government

Punjab AAP government investigated and dug up proper records and received Rs 3650 crore from Center instead

¶ Details

• GST (Compensation to States) Act, enacted in 2017, guaranteed all states an annual growth rate of 14% in their GST revenue during the period July 2017-June 2022
• If a state’s GST revenue grows slower than 14%, such ‘loss of revenue’ will be taken care of by the Centre by providing GST compensation grants to the state^[1]
• The Centre must pay this compensation on a bi-monthly basis, but had been consistently delayed^[1:1]
• Previous Congress government didn't present the proper records, after which the Government of India told the state government that an excess amount of Rs 3,900 crore of the GST compensation had been disbursed to Punjab^[2]
• Punjab AAP government lodged a new claim of ₹5,005 crore with it and received ₹3,670 crore of Goods and Services Tax (GST) compensation from the Centre^[2:1]

REFERENCES:

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1. https://prsindia.org/theprsblog/cost-of-gst-compensation ↩︎ ↩︎

2. https://www.hindustantimes.com/cities/chandigarh-news/punjab-gets-rs-3-670-cr-gst-compensation-after-it-lodged-new-claim-with-centre-fm-cheema-101701201449690.html ↩︎ ↩︎