Government releases 13th installment worth Rs 6000 crore to states to meet GST compensation shortfall

The government has released 70 percent of the total estimated GST compensation shortfall to the States and UTs. 

Created On: Jan 25, 2021 18:14 ISTModified On: Jan 25, 2021 20:02 IST
GST

The centre on January 15, 2021 released 13th installment of Rs 6,000 cr to states to meet GST compensation shortfall.

Out of the total amount, Rs 5,516 crore has been released to 23 states and Rs 483 crore has been released to the three union territories of Jammu and Kashmir, Puducherry and Delhi who are members of the GST Council.

The remaining states- Manipur, Mizoram, Nagaland, Sikkim and Arunachal Pradesh- do not have a gap in revenue on account of GST implementation.

Key Highlights 

The government has released 70 percent of the total estimated GST compensation shortfall to the States and UTs. 

Among this, Rs 71,099 crore has been released to the States and over Rs 6,900 crore has been released to the three UTs with Legislative Assembly.

This is in addition to the additional borrowing permission of Rs 1,06,830 crore granted to the States.

Background

The central government 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 by the Central Government through this window on behalf of the States and UTs. 13 rounds of borrowings have been completed so far starting from 23rd October, 2020.

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.

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