Finance Ministry releases weekly instalment of Rs.6,000 crores to states to meet GST shortfall

The finance ministry released the 13th instalment of Rs.6,000 crores to the states to meet Goods and Services Tax (GST) compensation shortfall, taking the total amount of fund released to Rs. 78,000 crores. Till now, 70 per cent of the total estimated GST compensation shortfall has been released to the states and union territories (UTs) with legislative assembly.

The Centre had set up a special borrowing window in October 2020 to meet the estimated shortfall of Rs.1.10 lakh crores in revenue arising on account of the implementation of the GST. The finance ministry has released the 13th weekly instalment of Rs.6,000 crores to the states to meet the GST compensation shortfall. Out of this, an amount of Rs.5,516.60 crores has been released to 23 states and an amount of Rs.483.40 crores has been released to the 3 UTs with legislative assembly (Delhi, Jammu and Kashmir, and Puducherry).

Source: Economic Times