GST compensation dues for 9 states could double to Rs 70,000 crore: ICRA

Centre will recover the excess amount paid last year by adjusting the same in this year's payment

Ratings agency ICRA expects just nine states to need Rs 70,000 crore as compensation for the shortfall in goods and services tax (GST) collection in FY20, on account of a severe dip in growth of state GST (SGST) revenues amid the slowdown.

Karnataka, Kerala, Tamil Nadu, Gujarat, Maharashtra, Haryana, Punjab, Rajasthan, and West Bengal are the nine states. The requirement for all states could be much higher.

Till now, three tranches of compensation to all states for the April-September period (H1FY20) have cost the Centre nearly Rs 80,000 crore. Business Standard reported on Thursday that for the entire fiscal year, the Centre