December 29, 2020
1 min read

GST Compensation: Union Govt Releses Further Rs 6K Crore

The Finance Ministry has released the ninth weekly instalment of Rs 6,000 crore to the states to meet the GST compensation shortfall.

Out of this, an amount of Rs 5,516.60 crore has been released to 23 states and an amount of Rs 483.40 crore has been released to the three Union Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir and Puducherry) who are members of the GST Council. The remaining 5 states — Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim — do not have a gap in revenue on account of GST implementation.

The government had set up a special borrowing window in October 2020 to meet the estimated shortfall of Rs 1.10 lakh crore in revenue arising on account of implementation of GST.

The borrowings are being done through this window by the Centre on behalf of the states and UTs. The borrowings have been done in 9 rounds. The amount borrowed so far was released to the States on October 23, November 2, November 9, November 23, December 1, December 7, December 14, December 21 and December 28.

The amount released this week was the 9th instalment of such funds provided to the states. The amount has been borrowed this week at an interest rate of 5.1508 per cent.

So far, an amount of Rs 54,000 crore has been borrowed by the Central government through the special borrowing window at an average interest rate of 4.7488 per cent.

In addition to providing funds through the special borrowing window to meet the shortfall in revenue on account of GST implementation, the Government has also granted additional borrowing permission equivalent to 0.50 per cent of Gross States Domestic Product (GSDP) to the states choosing Option-I to meet GST compensation shortfall to help them in mobilising additional financial resources.

All the states have been given their preference for Option 1. Permission for borrowing the entire additional amount of Rs 1,06,830 lakh crore (0.50 per cent of GSDP) has been granted to 28 states under this provision.

Also Read: GST Compensation: Centre Releases Rs 6K Crores To States

Also Read: All states and UTs accept GST compensation formula

Previous Story

RBI Points Towards Holding Inflation rate at 4%

Next Story

One Of The Biggest Comebacks In Test History: Ravi Shastri

Latest from Business

Accel Puts India’s AI Power in the Spotlight

Under the theme “Engineering India’s AI Advantage,” the exclusive, invite-only event will bring together leading AI founders, researchers, tech CXOs, policymakers, and global investors….reports Asian Lite News Global venture capital firm Accel

Nvidia slams US chip export curbs as ‘failure’

Jensen Huang said the US move has backfired by accelerating China’s self-sufficiency in semiconductors and diminishing American dominance in the global chip market…reports Asian Lite News Nvidia CEO Jensen Huang has sharply

SEBI Warns on Strata Exit

Strata was one of the first platforms to register under SEBI’s newly introduced SM REIT framework, which was designed to regulate fractional ownership in real estate and allow investors to pool capital
Go toTop