- GST Compensation Fund: Created to compensate states for revenue loss due to GST implementation. - Unutilized money: Handled as per the Compensation Act. - Apportionment: 50% Centre, 50% States. - Distribution among States: Based on SGST collection in the last year.
Under the GST (Compensation to States) Bill, 2017, the unutilized money in the GST Compensation Fund at the end of five years would be
Asked in APPSC Group 1 Prelims 2016 · Topic: The Finance Commission (Implementation of Finance Commission recommendations)
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Answer: B. Shared equally between the Centre and States with apportionment amongst the States on the basis of SGST collection in the last year of trans‐ ition
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