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Home News Goods and Services Tax - GST Month 3 2021 2021 (3) This
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100 percent of the estimated GST compensation shortfall of ₹ 1.10 Lakh crore released 20th Instalment of ₹ 4,104 crore released to the States on Monday, 15th March, 2021

March 15, 2021
  • Contents

The Ministry of Finance, Department of Expenditure has released the final weekly instalment of ₹ 4,104 crore to the States to meet the GST compensation shortfall. Out of this, an amount of ₹ 4,086.97 crore has been released to 23 States and an amount of ₹ 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 ₹ 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 ₹ 101,329 crore has been released to the States and an amount of ₹ 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 ₹ 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 ₹ 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 ₹ 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 / 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

2311.00

2

Arunachal Pradesh*

143

0.00

3

Assam

1869

994.00

4

Bihar

3231

3905.00

5

Chhattisgarh

1792

3109.00

6

Goa

446

840.00

7

Gujarat

8704

9222.00

8

Haryana

4293

4352.00

9

Himachal Pradesh

877

1717.00

10

Jharkhand

1765

1689.00

11

Karnataka

9018

12407.00

12

Kerala

4,522

5766.00

13

Madhya Pradesh

4746

4542.00

14

Maharashtra

15394

11977.00

15

Manipur*

151

0.00

16

Meghalaya

194

112.00

17

Mizoram*

132

0.00

18

Nagaland*

157

0.00

19

Odisha

2858

3822.00

20

Punjab

3033

8359.00

21

Rajasthan

5462

4604.00

22

Sikkim*

156

0.00

23

Tamil Nadu

9627

6241.00

24

Telangana

5017

2380.00

25

Tripura

297

226.00

26

Uttar Pradesh

9703

6007.00

27

Uttarakhand

1405

2316.00

28

West Bengal

6787

4431.00

 

Total (A):

106830

101329.00

1

Delhi

Not applicable

5865.00

2

Jammu & Kashmir

Not applicable

2272.00

3

Puducherry

Not applicable

742.00

 

Total (B):

Not applicable

8879.00

 

Grand Total (A+B)

106830

110208.00

* These States have ‘NIL’ GST compensation gap

RM/KMN

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