NEW DELHI: The Centre on Monday released an amount of Rs 6,000 crore as a second tranche to states as their GST compensation cess shortfall under a special borrowing window. The second tranche will be released to 16 States and three union territories, the Finance Ministry said in a statement.
The states that have received GST compensation are Andhra Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Meghalaya, Odisha, Tamil Nadu, Tripura, Uttar Pradesh, Uttarakhand. The same has been handed over to two union territories (UTs), including Delhi and Jammu and Kashmir.
According to the Finance Ministry, the borrowed amount will be transferred to the states as “back-to-back loan in lieu of GST compensation cess”.
On October 23, the government had transferred the first tranche of Rs 6,000 crore to these states and UTs to bridge the Goods and Services Tax (GST) revenue shortfall. With this, the government has facilitated total loans of Rs 12,000 crore till date under the special window programme. So far, 21 states and three UTs have opted for this special window involving back-to-back borrowing coordinated by the Ministry of Finance.
The facilities available to the states who choose Option-1 inter-alia include permission to borrow the final instalment of 0.5 per cent of GSDP out of the 2 per cent additional borrowings permitted by the government in view of the COVID pandemic, waiving the reforms condition.
The government will borrow Rs 1.1 lakh crore under the special window, the finance ministry earlier stated . Total shortfall in GST collection is estimated at Rs 2.35 lakh crore , of which Rs 1.1 lakh crore is on account of GST shortfall.