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Centre releases Rs 6,000 crore of GST compensation to 23 states, three UTs

Remaining five states do not have a gap in revenue on account of GST implementation.

Goods and Services Tax | GST compensation

Indivjal Dhasmana  |  New Delhi 

GST, goods and services tax
All states and three UTs have now opted for this special window

The union finance ministry has released Rs 6,000 crore as weekly instalment to 23 states and three union territories with legislature to meet the (GST) shortfall.

While Rs 5,516.60 crore has been released to states, Rs 483.40 given to UTs. The remaining five states -- Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim-- do not have a gap in revenue on account of GST implementation.

All states and three UTs have now opted for this special window.

The Centre will altogether borrow Rs 1.10 trillion on this account. The amount released this week was borrowed at 4.2 per cent interest rate. The Centre has so far borrowed Rs 36,000 crore on this count at an average interest rate of 4.7 per cent.

Besides the special window, the states were also granted permission to further borrow from markets up to 0.5 per cent of their respective gross state domestic product. Permission to borrow an additional amount of Rs 1.06 trillion has been granted to 28 states under this provision so far.

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First Published: Wed, December 09 2020. 18:50 IST