All states choose Option-1 to meet GST shortfall

New Delhi: All the 28 states and three Union Territories (UT) with legislature have decided to go for Option-1 to meet the revenue shortfall arising out of the Goods and Services Tax (GST) implementation, stated an official statement by the Ministry of Finance.

Jharkhand, the only remaining state, has now communicated its acceptance of Option-1, it said. The Central government has set up a special borrowing window for the states and the UTs who choose Option-1 to borrow the amount of shortfall arising out of GST implementation.

Moody's GST rate cut credit negative

“The window has been operationalised since 23rd October 2020 and the Government of India has already borrowed an amount of Rs 30,000 crores on behalf of the States in five installments and passed it on to the States and Union Territories, who chose Option-1,” read the release.

Now, the Jharkhand government will also receive funds raised through this window starting from the next round of borrowing.

The next installment of Rs 6,000 crore will be released to the states/UTs on December 7.

gst

According to the ministry, 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 per cent of Gross State Domestic Product (GSDP) out of the 2 per cent additional borrowings permitted by the Government of India, under Atma Nirbhar Abhiyaan on May 17, 2020. This is over and above the Special Window of Rs 1.1 lakh crore.

On receipt of the choice of Option-1, the Government of India has granted additional borrowing permission of Rs 1,765 crore to the state government of Jharkhand (0.50 per cent of Jharkhand’s GSDP).

The post All states choose Option-1 to meet GST shortfall appeared first on NewsroomPost.



from NewsroomPost https://ift.tt/2VFfo8d
https://ift.tt/2VHt3LW

Comments