Finance Ministry releases 6th installment of Rs 6,000 crore to States to meet GST compensation shortfall

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Dec 09, 2020

8:34PM

Finance Ministry releases 6th installment of Rs 6,000 crore to States to meet GST compensation shortfall

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The Finance Ministry has released the sixth installment of Rs six thousand crore to the States to meet the GST compensation shortfall. Out of this, an amount of Rs 5,516 crore has been released to 23 States and an amount of Rs 483.40 crore has been released to the three Union Territories Delhi, Puducherry and Jammu and Kashmir who are members of the GST Council. The remaining five States, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation.

The Ministry said, an amount of Rs 36 thousand crore has been borrowed by the Central Government so far, through the special borrowing window at an average interest rate of 4.71 per cent. The central Government is borrowing this amount on behalf of the States and UTs through a special borrowing window to meet the estimated shortfall of Rs 1.10 lakh crore in revenue arising on account of GST implementation.