Centre transfers Rs 6,000 cr to states to meet GST compensation shortfall

GST compensation

The Ministry of Finance has released the 15th instalment of Rs 6,000 crore to the states on Friday to meet the GST compensation shortfall. 

Out of this, an amount of over Rs 5,516 crore has been released to 23 states and an amount of nearly Rs 483 crore to  Delhi, Jammu and Kashmir and Puducherry. The Finance Ministry in a statement said, the remaining 5 States, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation. Also Read: India now “net creditor” with forex reserves of $590-bn, says MoS Anurag Singh Thakur

It said, till now, 81 percent of the total estimated GST compensation shortfall has been released to the states and UTs with the Legislative Assembly. Out of this, an amount of over Rs 82,132 crore has been released to the states and an amount of nearly Rs 7,867 crore to the 3 UTs.

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. 15 rounds of borrowings have been completed so far starting from 23rd October, 2020. Also Read: India signs Memorandum of Cooperation with Japan to promote training, movement of specified skilled workers


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