The government’s goods and services tax (GST )compensation shortfall to states is likely to be about Rs 15,000 crore if the collection continues to grow at 5 percent, CNBC-TV18 has learnt.
The massive opening surplus of Rs 48,000 crore in the compensation kitty may help Centre lower the gap to Rs 15,000 crore. However, the compensation shortfall in the next financial year is likely to widen to 8 times this amount, CNBC-TV18 came to this conclusion after analysing the GST Council presentation that held last week.
The shortfall may widen to as high as Rs 120,000 crore. In the current financial year, the Centre has been lucky because they had opened the year with a surplus of Rs 48,000 crore in the compensation cess kitty. Had it not been for this surplus amount the gap would have widened to as much as Rs 63,000 crore.