The Centre first admitted to problems on compensation payment in the 37th GST Council meeting held in Goa in September 2019. The economic slowdown, which has been underway for almost three years now, began to adversely impact GST revenue collections in August last year. The GST collections again picked up in November, partly due to festive sales and, in part, due to anti-evasion measures and a provision introduced to cap input tax credit. GST compensation payments had started getting delayed by then, with many state finance ministers beginning to raise concerns about requiring to repeatedly ask for their share of revenues. The GST compensation payment of Rs 35,298 crore for August-September 2019, and due in October, was paid in December.

Source: Indian Express August 27, 2020 22:46 UTC