The Government of India has released the entire pending Goods and Services Tax (GST) compensation payable to States and Union Territories up to 31 May 2022 by disbursing a total amount of ₹86,912 crore, thereby fully settling all dues except for compensation relating to June 2022. This decision was taken to support States in managing their finances and ensuring uninterrupted implementation of development programmes, particularly capital expenditure, despite limited availability of funds in the GST Compensation Cess Fund, which had only about ₹25,000 crore at the time. The balance amount was released by the Centre from its own resources, to be recouped from future cess collections. The compensation released covers dues for April and May 2022 amounting to ₹17,973 crore, February and March 2022 dues of ₹21,322 crore, and the remaining balance payable up to January 2022 of ₹47,617 crore. The press release reiterates that under the GST (Compensation to States) Act, 2017, States were assured compensation for revenue loss arising from GST implementation for a period of five years, funded through cess collections on specified goods. It also notes that the revenue gap widened due to the impact of COVID-19 and slower growth in cess collections, leading the Centre to borrow and release ₹1.1 lakh crore in 2020–21 and ₹1.59 lakh crore in 2021–22 as back-to-back loans to States with their consent. With improved GST revenue performance in recent months, the full clearance of compensation dues reflects continued Centre–State coordination and commitment to fiscal stability of States.