All the dues of states on account of GST compensation will be released by the Centre in two instalments, junior finance minister Anurag Thakur said in the Lok Sabha on Monday.

His reply came after MPs from Telangana and Odisha complained during Question Hour that their states were not getting their share of the Goods and Services Tax (GST) and Integrated Goods and Service Tax (IGST).

“All due GST compensation will be given to the states in two instalments,” Thakur said.

The minister said GST (Compensation to States) Act, 2017 provides for compensation to states and union territories once every two months on account of revenue loss because of the implementation of the GST.

He said the states have been paid GST compensation on a bi-monthly basis with effect from July, 2017.

The compensation has been released till September, 2019 and the next compensation will cover October and November.

A sum of Rs 2.1 lakh crore has been released as compensation to states, including the union territories of Delhi and Puducherry, after the implementation of the new tax regime from July 1, 2017.

States might face a consolidated revenue gap of up to Rs 1.23 lakh crore on account of the withdrawal of compensation after the five-year GST transition period ends on June 30, 2022, said a report by economic think tank National Institute of Public Finance and Policy (NIPFP).

“If the GST compensation is withdrawn after June 30, 2022, consolidated revenue gap of states would vary between Rs 1,00,700 crore and Rs 1,23,646 crore, depending on expected tax buoyancy and reliability of data sources,” the report said.