The federal government is expected to soon compensate the state’s GST of Tk 1.5 crore. The company has paid Tk 8.2 crore as compensation for the current financial year and Tk 4 crore for the October-November period. Soon the states will receive this amount, the government said.
According to the GST rules, the central government will have to compensate for five years since the introduction of GST in order to deduct the loss of tax revenue in the states. No proper compensation has been paid for the last four months of the current financial year. The central government has now decided to make this payment for the month of October to November.
Compensation for 5 years
GST was launched in July with the aim of imposing the same level of tax on goods and services across the country. This new tax system ensures that states will pay compensation in the event of loss of revenue. Accordingly, based on 2015-16, after the introduction of GST, it was decided that if the revenue of the states did not increase by 14 percent, the central government would compensate the state for 5 years.
Till now 2.5 lakh crore
Accordingly, since July 2017, the centers have provided Rs 2.11 lakh crore to the states. The central government has compensated GST up to Rs 48,785 crore from July 2017 to March 2018 and Rs 81,141 crore between April 2018 and March 2019.
17,789 crore for April-May 2019 and Rs 27,956 crore for June-July. 35,298 crore was disbursed for the August-September period. 35,000 crore for the October-November period.