Govt releases weekly installment of Rs 6,000 cr to states to meet GST shortfall

Govt releases weekly installment of Rs 6,000 cr to states to meet GST shortfall

“The remaining 5 States, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation,” the government said.“The remaining 5 States, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation,” the government said.

The fourteenth installment of Rs 6,000-crore GST compensation payment was released to the states, the central government said on Wednesday. The states and union territories have so far received Rs 84,000 crore of Rs 1.1 lakh crore to be disbursed by the Centre this fiscal.

The central government borrows the funds under a special window and passes it on to states in back-to-back loan arrangement. The interest rate for the latest loan installment was 4.61 % while the average rate for the entire borrowing so far is at 4.74%, the government said.

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While 23 states have been allotted Rs 76,616 crore so far, the remaining money (Rs 7,384 crore) has been released to the 3 union territories with legislative assembly (Delhi, Jammu & Kashmir & Puducherry) which are members of the GST Council.

“The remaining 5 States, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation,” the government said.

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