The Finance Ministry on Monday, November 2 released Rs 6,000 crore as the second tranche to 16 States and three Union territories under its special window to states for meeting the GST compensation cess shortfall. This amount was raised at a weighted average yield of 4.42 percent.
This amount will be passed on to the States/Union territories at the same interest rate, which is lower than the cost of borrowings for the States and Union territories, thus benefitting them. The Ministry of Finance has facilitated loans of Rs.12,000 crore till date under the Special Window to States/ Union territories.
Twenty one States and three Union Territories till date, have opted for the Special Window under Option I. The loans raised by the Government of India are released on a back-to-back basis to States or Union territories, instead of GST Compensation Cess releases. The loans have been released to the following States and Union Territories:- Andhra Pradesh, Bihar, Assam, Goa, Gujarat, Himachal Pradesh, Haryana, Karnataka, Madhya Pradesh, Meghalaya, Maharashtra, Odisha, Tamil Nadu, Tripura, Uttar Pradesh, Uttarakhand, Union territories of Delhi, Jammu & Kashmir and Puducherry, Ministry of Finance said on Monday.
GST monthly collection crosses Rs 1 lakh crore first time in FY21
Assam, Tripura and 14 other states to get INR 6000 crore as GST compensation
CM P. Vijayan writes to Finance Min regarding GST compensation