The government has already released back-to-back loan amounting to Rs 1.59 lakh crore to state governments in lieu of GST Compensation shortfall in FY 2021-22.
GST, which subsumed indirect taxes like excise duty, service tax and VAT, was rolled out from July 1, 2017. The five year period for compensation ends in June 2022.
e Centre opened a special borrowing window last year to meet the estimated shortfall of Rs 1.1 lakh crocre in revenue arising on account of implementation of GST.
All eligible States and UTs (with Legislature) have agreed to the arrangements of funding of the compensation shortfall under the back-to-back loan facility.
New Delhi: With states not being paid compensation for loss of revenue from implementation of GST since August, Finance Minister Nirmala Sitharaman on Thursday assured the Centre will honour its commitment but did not say by when the dues will be cleared. States that surrendered powers to collect taxes on goods and services after local […]
New Delhi: Facing heat over delay in payment of GST compensation, the central government on Monday released Rs 35,298 crore to states to make up for the loss of revenue due to rollout of the Goods and Services Tax (GST). When GST was rolled out on July 1, 2017, states were through legislation promised to […]
New Delhi: With Covid-19 disruptions making it impossible for the Centre to meet its obligation to provide compensation under the Goods and Services Tax (GST) law to states this year, it has proposed two options to the states to cover their compensation gap and meet their expenditure requirements. States have been given seven days time […]
New Delhi: States will have to forego borrowing flexibility of 1 per cent of state GDP given under the Atmanirbhar Bharat package if they opt to settle their entire GST compensation shortfall for FY21 through market borrowings. As per the design of the options given to the states by the Centre to meet GST compensation […]
New Delhi: As several states continue to oppose the borrowing options proposed in lieu of the GST compensation, the Centre has told states that central revenues have been under greater strain compared to GST revenue. In a letter to the states, and Union Territories proposing the two options and explaining them in detail, the Finance […]
New Delhi: Even with consensus eluding the GST Council meeting on Monday over adoption of borrowing option to settle compensation dues, the Finance Ministry has granted permission to 20 states to raise an additional amount of Rs 68,825 crore through open market borrowings towards the compensation shortfall. A Finance Ministry statement said that additional borrowing […]
New Delhi: The Central government on Friday said that it borrowed and transferred Rs 6,000 crore as first tranche to 16 states on account of GST compensation under the special borrowing window. The Centre has evolved a special borrowing window to address the shortfall in the GST collection during the year 2020-2021. In all, 21 […]
New Delhi: The Finance Ministry had released the 17th weekly instalment of Rs 5,000 crore to the states to meet the GST compensation shortfall. Out of this, an amount of Rs 4,730.41 crore has been released to 23 States and an amount of Rs 269.59 crore has been released to the three Union Territories (UT) […]