Undue Protection? State GST ‘shortfall’ for March-May at a whopping Rs 80,000 crore

Despite the recent release of Rs 36,500 crore by the Centre from the integrated GST pool, the state governments will require to be paid a whopping Rs 80,000 crore more as compensation for their State Goods and Service Tax (S-GST) shortfall in the March-May period, going by the formula of 14% assured annual revenue growth. What has inflated the compensation requirement is a sharp fall in revenue in…