Businesses With Annual Turnover Of Up To Rs 40 Lakh Goods And Services Tax Exempt According To Finance Ministry
Ministry of Finance stated yesterday that all States except Jharkhand choose Option-1 to meet the GST implementation shortfall. The States & Union Territories who choose Option-1 are getting the amount of shortfall arising out of GST implementation through a special borrowing window put in place by the Government of India.
The window has been operationalised since 23rd October, 2020 and the Government of India has already borrowed an amount of Rs.30,000 crore on behalf of the States in five instalments and passed it on to the States and Union Territories, who chose Option-1. The funds borrowed through the special window were released to the States and UTs on 23rd October, 2020, 2nd November, 2020, 9th November, 2020, 23rd November, 2020 and 1st December, 2020. Now the State of Chhattisgarh will also receive funds raised through this window starting from the next round of borrowing.
Under the terms of Option-1, besides getting the facility of a special window for borrowings to meet the shortfall arising out of GST implementation, the States are also entitled to get unconditional permission to borrow the final instalment of 0.50% of Gross State Domestic Product (GSDP) out of the 2% additional borrowings permitted by the Government of India, under AtmanirbharAbhiyaan on 17th May, 2020. This is over and above the Special Window of Rs.1.1 lakh crore.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)