The Central Government released ₹17,000 crore as Goods and Services Tax (GST) compensation to States and Union Territories on 3 November 2021 to help bridge revenue shortfalls arising from the implementation of GST. With this release, the total GST compensation disbursed to States and UTs during FY 2021–22 rose to ₹60,000 crore. The press release reiterates that, in addition to regular compensation paid from the GST Compensation Cess Fund, the Centre has already released ₹1.59 lakh crore to States in the form of back-to-back loans, as approved by the GST Council, to address the shortfall caused by insufficient cess collections during the year. The compensation released on this occasion was distributed across a wide range of States, with Maharashtra, Karnataka, Gujarat, Tamil Nadu, Uttar Pradesh, and Delhi among the major recipients, reflecting their respective revenue gaps. The release underscores the Centre’s commitment to ensuring fiscal stability of States, enabling them to manage expenditure pressures, particularly in the context of pandemic-related challenges, and sustaining cooperative federalism through timely financial support.