TMI BlogAll States choose Option-1 to meet the GST implementation shortfallX X X X Extracts X X X X X X X X Extracts X X X X ..... All States choose Option-1 to meet the GST implementation shortfall - Goods and Services Tax - GST Dated:- 5-12-2020 - News - Jharkhand has become the latest State to go for Option-1 Jharkhand will get ₹ 1,689 crore through special borrowing window to meet the GST implementation shortfall Permission to raise additional ₹ 1,765 crore through borrowings also issued to Jharkhand All the 28 States and 3 Union Territories with legislature have decided to go for Option-1 to meet the revenue shortfall arising out of the GST implementation. Jharkhand, the only remaining State, has now communicated its acceptance of Option-1. All the 3 Union Territories with Legislative Assembly who are members of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GST council have already decided in favour of Option-1. The Government of India has set up a special borrowing window for the States Union Territories who choose Option-1 to borrow the amount of shortfall arising out of GST implementation. The window has been operationalised since 23 rd October, 2020 and the Government of India has already borrowed an amount of ₹ 30,000 crore on behalf of the States in five instalments and passed it on to the States and Union Territories, who chose Option-1. Now the State of Jharkhand will also receive funds raised through this window starting from the next round of borrowing. The next instalment of ₹ 6,000 crore will be released to the States/UTs on 7 th December, 2020. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Under the terms of Option-1, besides getting the facility of a special window for borrowings to meet the shortfall arising out of GST implementation, the States are also entitled to get unconditional permission to borrow the final instalment of 0.50% of Gross State Domestic Product (GSDP) out of the 2% additional borrowings permitted by the Government of India, under Atma Nirbhar Abhiyaan on 17 th May, 2020. This is over and above the Special Window of ₹ 1.1 lakh crore. On receipt of the choice of Option-1, the Government of India has granted additional borrowing permission of ₹ 1,765 crore to the State Government of Jharkhand (0.50 % of Jharkhand s GSDP). The amount of additional borrowing permission granted to 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 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 04.12.2020 (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 804.15 2 Arunachal Pradesh* ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 143 0.00 3 Assam 1869 346.12 4 Bihar 3231 1358.54 5 Chhattisgarh # 1792 0.00 6 Goa 446 292.20 7 Gujarat 8704 3208.80 8 Haryana 4293 1514.40 9 Himachal Pradesh 877 597.47 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10 Jharkhand# 1765 0.00 11 Karnataka 9018 4317.39 12 Kerala 4,522 328.20 13 Madhya Pradesh 4746 1580.51 14 Maharashtra 15394 4167.99 15 Manipur* 151 0.00 16 Meghalaya 194 38.89 17 Mizoram* ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 132 0.00 18 Nagaland* 157 0.00 19 Odisha 2858 1329.97 20 Punjab 3033 475.80 21 Rajasthan 5462 907.12 22 Sikkim* 156 0.00 23 Tamil Nadu 9627 2171.90 24 Telangana 5017 299.88 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 25 Tripura 297 78.90 26 Uttar Pradesh 9703 2090.21 27 Uttarakhand 1405 806.10 28 West Bengal 6787 252.22 Total (A): 106830 26966.76 1 Delhi Not applicable 2040.77 2 Jammu Kashmir Not applicable 790.53 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Puducherry Not applicable 201.94 Total (B): Not applicable 3033.24 Grand Total (A+B) 106830 30000.00 * These States have NIL GST compensation gap # Funds will be released starting after next round of borrowing. - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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