₹4,122 crore released to Kerala as tax devolution, IGST settlement by Centre

THIRUVANANTHAPURAM

The Union government has released ₹4,122 crore to Kerala with respect to tax devolution and settlement of the Integrated Goods and Services Tax (IGST) due to the State.

The fund release brings relief to the State which is facing a financial crunch. The Union government had on Thursday authorised the release of ₹2,736 crore with respect to tax devolution to the State and ₹1,386 crore towards IGST settlement.

‘Not assistance’

Finance Minister K.N. Balagopal said the fund release is not additional financial assistance to the State from the Central government. It constitutes tax shares that should normally flow to the State.

The Central tax share is normally released in monthly instalments.

Among States

The IGST levied by the Centre on interstate supply of goods and services is distributed among the States.

On Thursday, the Union government had authorised the release of two instalments of tax devolution amounting to ₹1.42 lakh crore to the States, including Kerala.

Meanwhile, the distribution of salaries of government employees through bank accounts via the employeeTreasury Savings Bank (eTSB) was reportedly hit on March 1. The State government attributed the problem to a “technical glitch.”

Salary distribution of government employees through bank accounts was hit on March 1 owing to ‘technical glitch’

GST revenues up by 16%

Kerala’s GST revenue for February 2024 clocked a 16% growth over February 2023, according to data released by the Union Finance Ministry on Friday. GST collection in February this year was ₹2,688 crore, up from ₹2,326 crore the previous February.