New Delhi, Feb 21 (IANS): The Central government released Rs 19,950 crore as GST compensation cess to the states/UTs on last Monday, officials said.

With this amount, the Central government has released a total of Rs 1,20,498 crore towards GST compensation to the States/UTs during current FY, a statement said. However, only Rs 78,874 crore have been collected as compensation cess in the current FY (till January 31, 2020).

Finance Ministry officials said that a total GST compensation cess of Rs 62,611 crore was collected in FY 2017-18, out of which Rs 41,146 crore was released to the states/UTs in FY 2017-18 as GST compensation. Further, in FY 2018-19, Rs 95,081 crore was collected as GST compensation cess of which Rs 69,275 crore were released to the states/UTs.

Officials said that as on March 31, 2019, an amount of Rs 47,271 crore compensation cess collected had remained unutilised after the release of GST compensation to the states/UTs in FYs 2017-18 and 2018-19.

This compensation was to come out of a pool that is to be created by levy of cess on certain sin and luxury goods over and above the GST tax rate. The shortfall is calculated assuming a 14 per cent annual growth in GST collections by states over the base year of 2015-16.

In FY 2018-19, Rs 95,081 crore was collected as GST compensation cess of which Rs 69,275 crore was released to the states/UTs as GST compensation.