Entire GST Compensation Cess Dues of Rs 16,982 Crore will be Cleared: FM Nirmala Sitharaman

New Delhi: Union Finance Minister Nirmala Sitharaman on Saturday said the entire pending dues for the GST compensation cess to the states will be cleared as of today. "Till May 31, we have already cleared GST compensation," the Finance Minister added.

Sitharaman said the entire pending balance of the GST compensation cess -- a total of Rs 16,982 crore -- will be cleared and "although this amount is not available with the compensation fund as of today, we have decided to release from our own resources and the same amount will be recouped from the future compensation cess collection". (Also Read: SBI vs PNB vs HDFC vs BoB: Latest Home Loan Interest Rate Compared)

While speaking during the press conference after the GST Council Meeting on Saturday, the Finance Minister said, "With this release, the Centre would clear the entire provisional admissible compensational cess dues for five years as envisaged in the GST Compensation to States Act, 2017." (Also Read: 'People Not Losing Jobs in India...': MoS Rajeev Chandrasekhar Amid IT Layoffs)

In addition, the Finance Minister said the Centre would clear the admissible final compensation to those states, which have provided the revenue figures as certified by the audit accountant general of the states, and that amounts to Rs 16,524 crore.

While speaking on the reduction of GST rates, Sitharaman also said, "We are reducing the item on Raab -- the kind of liquid jaggery -- to between nil to 5 percent." She said if it's loose it will be nil and if it's prepackaged and labelled, it will be 5 percent.

The GST rates on pencil sharpeners will come down from 18 percent to 12 percent.