On Friday, the Expenditure Department of the Ministry of Finance released the Goods and Services Tax (GST) compensation to the states in 1 weekly installment to the states.
Of this, Rs 4,730.41 crore was released in 23 states and Rs 2,269.59 crore in the three Union Territories (UT) legislatures, the finance ministry said in a statement on Saturday. (Delhi, Jammu and Kashmir and Pondicherry) who are members of the GST Council.
The remaining five states – Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim – have no revenue gap due to GST implementation.
Significantly, 91 per cent of the total estimated GST compensation deficit so far has been published in the states and union territories, including legislatures. Of this, Rs 91,460.34 crore has been issued in the states and Rs 8,599.66 crore in Delhi, Jammu and Kashmir and Puducherry.
The Government of India set a special window in October 2020 to cover the shortfall of Rs 1.10 lakh crore in revenue generated due to the implementation of GST.
Through this window, the Government of India is receiving this The on behalf of the States and Union Territories. According to the Ministry of Finance, since October 23, 2020, the adoption of 1 round round orrow has been completed.
“Under the special window, the Government of India has been taking stock of government stocks for a period of five years and five years. The GST deficit, which is proportionally pending for GST acceptance for a period of five years, has come to an end. These states and Union Territories were in favor of exempting GST compensation from the first installment, ”the ministry said.
It said the amount released this week was the 17th installment of the national fund to be provided to states. “This week, the amount has been borrowed at an interest rate of .5.5924 per cent. So far, the central government has taken an average interest rate of 4.63030 per cent through a special by-window,” it added.
In addition to providing funding through a special ingot window to cover the revenue shortfall due to the implementation of GST, the central government has also allowed option-selecting states to receive additional ingots equal to 0.50 per cent of the Gross States Domestic Product (GSDP). I will cover the GST compensation deficit to help them raise additional financial resources.
“All the states have given their priority to Option-I. Under this provision, 28 states have been allowed to take a full additional loan of Rs 1,06,830 crore (0.50 per cent of GSDP),” the ministry said.