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The government will clear the entire goods and services tax, or GST, compensation dues of ₹ 16,982 crores from its own pocket today, Finance Minister Nirmala Sitharaman said after a meeting of the council that sets GST rates.
"We have announced today that the entire due on the pending balance of the GST compensation will be cleared as of today. In other words, the entire pending balance of the GST compensation - a total of ₹ 16,982 crore - will be cleared," Sitharaman said.
"Although this amount is not really available in the compensation fund as of today, we have decided to release this amount from our own resources and the same amount will be recouped from the future compensation cess collection," said the Finance Minister
She, on February 1, presented her last major Union Budget before the general election next year. Sitharaman said this payment will clear the compensation dues for five years.
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