The Union Finance Ministry on Monday released the tenth installment of Rs 6,000 crore to the states to meet the GST compensation shortfall, taking the total amount provided so far under this window to Rs 60,000 crore.

Out of this, an amount of Rs 5,516.60 crore has been released to 23 states and an amount of Rs 483.40 crore has been released to the 3 Union Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir & Puducherry) who are members of the GST Council. The remaining five states viz Arunachal Pradesh, Manipur, Mizoram, Nagaland, and Sikkim, do not have a gap in revenue on account of GST implementation. Now, more than 50 per cent of the estimated GST compensation shortfall has been released to the states and UTs with a Legislative Assembly.

The government had set up a special borrowing window in October 2020 to meet the estimated shortfall of Rs 1.10 lakh crore in revenue arising on account of implementation of GST. The borrowings are being done through this window by the Centre on behalf of the states and UTs. The borrowings have been done in 10 rounds. The amount borrowed so far was released to the states in 10 rounds on - October 23, November 2, 9, 23, December 1, 7, 14, 21 and 28.

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