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GST Compensation - Centre releases 12th Instalment of Rs 6,000 crore

By TIOL News Service

NEW DELHI, JAN 18, 2021: THE Ministry of Finance has released the 12th weekly instalment of Rs. 6,000 crore to the States today 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 3 Union Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir & 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.

Till now, 65 percent of the total estimated GST compensation shortfall has been released to the States & UT with Legislative Assembly. Out of this, an amount of Rs. 65,582.96 crore has been released to the States and an amount of Rs. 6,417.04 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.  12 rounds of borrowings have been completed so far starting from 23 rd October, 2020.

The amount released this week was the 12 th instalment of such funds provided to the States. The amount has been borrowed this week at an interest rate of 4.4315%. So far, an amount of Rs.72,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.7024%.

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 18.01.2021

(Rs. in Crore)

S. No.

Name of State / UT

Additional borrowing of 0.50 percent allowed to States

Amount of fund raised through special window passed on to the States/ UTs

1

Andhra Pradesh

5051

1684.89

2

Arunachal Pradesh*

143

0.00

3

Assam

1869

724.96

4

Bihar

3231

2846.74

5

Chhattisgarh

1792

1184.82

6

Goa

446

612.31

7

Gujarat 

8704

6723.29

8

Haryana

4293

3172.91

9

Himachal Pradesh 

877

1251.83

10

Jharkhand

1765

643.65

11

Karnataka

9018

9045.61

12

Kerala

4,522

2525.64

13

Madhya Pradesh

4746

3311.47

14

Maharashtra

15394

8732.41

15

Manipur*

151

0.00

16

Meghalaya

194

81.59

17

Mizoram*

132

0.00

18

Nagaland*

157

0.00

19

Odisha

2858

2786.53

20

Punjab

3033

3661.36

21

Rajasthan

5462

2661.67

22

Sikkim*

156

0.00

23

Tamil Nadu

9627

4550.36

24

Telangana

5017

1206.87

25

Tripura

297

165.00

26

Uttar Pradesh

9703

4379.49

27

Uttarakhand

1405

1688.73

28

West Bengal

6787

1940.83

 

Total (A):

106830

65582.96

1

Delhi

Not applicable

4275.94

2

Jammu & Kashmir

Not applicable

1656.36

3

Puducherry

Not applicable

484.74

 

Total (B):

Not applicable

6417.04

 

Grand Total (A+B)

106830

72000.00

* These States have ‘NIL' GST compensation gap


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