GST

GST Compensation Shortfall-20th Instalment Released to the States

3 minutes, 13 seconds Read

GST Compensation Shortfall-20th Instalment Released to the States


Ministry of Finance

100 percent of the estimated GST compensation shortfall of Rs.1.10 Lakh crore released

20th Instalment of Rs. 4,104 crore released to the States on Monday, 15th March, 2021

Advertisements

Posted On: 15 MAR 2021 5:48PM by PIB Delhi

The Ministry of Finance, Department of Expenditure has released the final weekly instalment of Rs.4,104 crore to the States to meet the GST compensation shortfall. Out of this, an amount of Rs.4,086.97 crore has been released to 23 States and an amount of Rs.17.03 crore has been released to the 3 UTs with Legislative Assembly.

With the current release, 100 percent of the total estimated GST compensation shortfall of Rs.1.10 lakh crore for the year 2020-21 has now been released to the States & UTs with Legislative Assembly. Out of this, an amount of Rs.101,329 crore has been released to the States and an amount of Rs.8,879 crore has been released to the 3 UTs with Legislative Assembly.

The Government of India 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 Government of India on behalf of the States and UTs. Starting from 23rd October, 2020, the borrowings were completed in 20 weekly instalments.

Under the special window, the Government of India has been borrowing in Government Stock with tenure of 3 years and 5 years. The borrowings made under each tenure are equally divided among all the States as per their GST compensation shortfall. With the current release, the proportionate pending GST shortfall with respect to borrowing under both 5 years tenure and 3 year tenure has been concluded for 23 States and 3 UTs with legislature. Remaining 5 States doesn’t have any GST compensation shortfall.

The amount released this week was the 20th instalment of such funds provided to the States. The amount has been borrowed this week at an interest rate of 4.9288%. The total amount of Rs.1,10,208 crore has been borrowed by the Central Government through the special borrowing window at an weighted average interest rate of 4.8473%. 

In addition to providing funds through the special borrowing window to meet the shortfall in revenue on account of GST implementation, the Government of India has also granted additional borrowing permission equivalent to 0.50 % 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 given their preference for Option-I. Permission for borrowing the entire additional amount of Rs.1,06,830 crore (0.50 % of GSDP) has been granted to 28 States under this provision.

The amount of additional borrowing permission granted to 28 States and the amount of funds raised through special window and released to the States and Union Territories so far is annexed.                                                                                         

State wise additional borrowing of 0.50 percent of GSDP allowed and amount of funds raised through special window passed on to the States/UTs till 15.03.2021

(Rs. in Crore)

S. No.Name of State / UTAdditional borrowing of 0.50 percent allowed to StatesAmount of fund raised through special window passed on to the States/ UTs
1Andhra Pradesh50512311.00
2Arunachal Pradesh*1430.00
3Assam1869994.00
4Bihar32313905.00
5Chhattisgarh17923109.00
6Goa446840.00
7Gujarat 87049222.00
8Haryana42934352.00
9Himachal Pradesh 8771717.00
10Jharkhand17651689.00
11Karnataka901812407.00
12Kerala4,5225766.00
13Madhya Pradesh47464542.00
14Maharashtra1539411977.00
15Manipur*1510.00
16Meghalaya194112.00
17Mizoram*1320.00
18Nagaland*1570.00
19Odisha28583822.00
20Punjab30338359.00
21Rajasthan54624604.00
22Sikkim*1560.00
23Tamil Nadu96276241.00
24Telangana50172380.00
25Tripura297226.00
26Uttar Pradesh97036007.00
27Uttarakhand14052316.00
28West Bengal67874431.00
 Total (A):106830101329.00
1DelhiNot applicable5865.00
2Jammu & KashmirNot applicable2272.00
3PuducherryNot applicable742.00
 Total (B):Not applicable8879.00
 Grand Total (A+B)106830110208.00

* These States have ‘NIL’ GST compensation gap

RM/KMN

Source: Posted On: 15 MAR 2021 5:48PM by PIB Delhi

Also read other articles @ EduTaxTuber

author

EduTaxTuber Team

We are here to help for every updates related to everything...👍📙👍📗

Similar Posts

Leave a Reply

Realme 10 Pro and 10 Pro+ Launched RBI Monetary Policy Highlights England vs Senegal: FIFA World Cup 2022 No Curfew in Mumbai: Section 144 Imposed to ensure Peace Elon Musk suspends Kanye West Twitter Account for inciting violence