Tax Management India. Com
                        Law and Practice: A Digital eBook ...
TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Articles News
Highlights
D. Forum
What's New
Sub-Menu

Share:      

        Home        
 
News
Home News Goods and Services Tax - GST Month 3 2021 2021 (3) This
← Previous Next →
 

GST compensation shortfall released to States reaches ₹ 1.06 lakh crore

March 9, 2021
  • Contents

GST compensation shortfall released to States reaches ₹ 1.06 lakh crore

19th Instalment of ₹ 2,104 crore released to the States on Monday, 08th March, 2021

96 per cent of the estimated shortfall of ₹ 1.10 lakh crore released

The Ministry of Finance, Department of Expenditure has released the 19th weekly instalment of ₹ 2,104 crore to the States to meet the GST compensation shortfall. Out of this, an amount of ₹ 2,103.95 crore has been released to 7 States and an amount of ₹ 0.05 crore has been released to the Union Territory of Puducherry.

Till now, 96 percent of the total estimated GST compensation shortfall has been released to the States & UTs with Legislative Assembly. Out of this, an amount of ₹ 97,242.03 crore has been released to the States and an amount of ₹ 8,861.97 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 ₹ 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. 19 rounds of borrowings have been completed so far starting from 23rd October, 2020.

Under the special window, the Government of India has been borrowing in Government Stock with tenure of 3 years and 5 years. The borrowing made under each tenure is 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 5 years tenor has been concluded for 23 States and 3 UTs with legislature. Remaining 5 States have not GST compensation shortfall.

The amount released this week was the 19th instalment of such funds provided to the States. The amount has been borrowed this week at an interest rate of 5.8594%. So far, an amount of ₹ 1,06,104 crore has been borrowed by the Central Government through the special borrowing window at an weighted average interest rate of 4.8842%

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 ₹ 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 08.03.2021

(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

2306.59

2

Arunachal Pradesh*

143

0.00

3

Assam

1869

992.12

4

Bihar

3231

3897.50

5

Chhattisgarh

1792

2654.69

6

Goa

446

838.38

7

Gujarat 

8704

9204.31

8

Haryana

4293

4343.62

9

Himachal Pradesh 

877

1713.71

10

Jharkhand

1765

1442.18

11

Karnataka

9018

12383.13

12

Kerala

4,522

4923.48

13

Madhya Pradesh

4746

4533.28

14

Maharashtra

15394

11954.02

15

Manipur*

151

0.00

16

Meghalaya

194

111.80

17

Mizoram*

132

0.00

18

Nagaland*

157

0.00

19

Odisha

2858

3814.67

20

Punjab

3033

7137.53

21

Rajasthan

5462

4249.28

22

Sikkim*

156

0.00

23

Tamil Nadu

9627

6229.05

24

Telangana

5017

2196.62

25

Tripura

297

225.54

26

Uttar Pradesh

9703

5995.48

27

Uttarakhand

1405

2311.55

28

West Bengal

6787

3783.50

 

Total (A):

106830

97242.03

1

Delhi

Not applicable

5853.76

2

Jammu & Kashmir

Not applicable

2267.62

3

Puducherry

Not applicable

740.59

 

Total (B):

Not applicable

8861.97

 

Grand Total (A+B)

106830

106104.00

* These States have ‘NIL’ GST compensation gap

← Previous Next →

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Site Map - Recent || Site Map || ||