By Bizodisha Bureau, Bhubaneswar, December 4, 2017: The Odisha government has received Rs 1,020 crore as Goods and Services Tax (GST) compensation for July to October this financial year, despite of a revenue increase during the same period.

The GST came to force across the country on July 1.

Odisha finance minister Sashi Bhusan Behera told the assembly on Monday that the government received Rs 333 crore as GST compensation for July and August. However, the union finance ministry has sanctioned Rs 687 crore for September and October.

Behera said the compensation amount, less or more, would be adjusted at the end of the financial year.

As per the GST (Compensation to States) Act, the states which registered below 14 per cent growth would be compensated for the revenue loss, if any. The base year for the calculation of compensation is 2015-16.

The state government had collected Rs 11,047 crore in 2015-16. With 14 per cent growth, the state government expects to get Rs 14,357.76 crore in the 2017-18 financial year, Behera said.

However, it collected Rs 3,735.14 crore as GST in July-October, this financial year registering a 2.30 per cent increase against the last corresponding period.

The state government had collected Rs 3,651.28 crore revenue between July and October in 2016-17.

The state government has also collected Rs 4,415.20 crore as Value Added Tax (VAT) and Central Sales Tax (CST) during the four months this financial year from petroleum products and liquor which are exempted from the GST.

Out of Rs 4,415.20 crore, Indian Oil Corporation Ltd (IOCL) has paid Rs 2,934 crore in September as Value Added Tax (VAT) for December 2015 to July 2017.