Kerala is set to receive Rs 780 crore as GST compensation after Union Finance Minister Nirmala Sitharaman announced Saturday that the Centre has decided to clear all pending dues for state governments.

"The entire pending balance of GST compensation of Rs 16,982 crore will be cleared as of today," Sitharaman said.

The union minister said the Centre will be releasing the amount from its own resources and the same will be recouped from the future cess collection.

Maharashtra will receive the highest GST compensation of Rs 2,102 crore followed by Karnataka, Rs 1,934 crore.

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Last week, responding to NK Premachandran MP in the Parliament, Sitharaman had said that Kerala had not sent the requisite AG's certificate for GST compensation since 2017-18.

AG's certification is (mandatory) by law between the Centre, states and the AG (accountant general).

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