The Centre has cleared the entire amount of Goods and Service Tax compensation payable to states up to May 31, by releasing an amount of Rs 86,912 crore, an official statement said on Tuesday.
"This decision has been taken despite the fact that only about Rs 25,000 crore is available in the GST Compensation Fund. The balance is being released by the Centre from its own resources pending collection of cess," the statement added.
Maharashtra has time and again taken up the case of compensation, with Chief Minister Uddhav Thackeray reminding Prime Minister Narendra Modi of the delay.
Result: The Centre on Tuesday cleared compensation of Rs 14,145 crore for Maharashtra.
A senior Finance Department Officer told the Free Press Journal, ‘‘With Monday’s move, the state government would be able to partially meet the liquidity crunch and spend money on slew of works proposed in the annual budget for 2022-23.’’
