Goods and Services Tax – GST Dated:- 15-7-2021 – News – ₹ 75,000 crore released to States and UTs with Legislature as GST Compensation shortfall Almost 50 % of the total shortfall for the entire year released in a single instalment Ministry of Finance has released today ₹75,000 crore to the States and UTs with Legislature under the back-to-back loan facility in lieu of GST Compensation. This release is in addition to normal GST compensation being released every 2 months out of actual cess collection. Subsequent to the 43 rd GST Council Meeting held on 28.05.2021 , it was decided that the Central Government would borrow ₹1.59 lakh crore and release it to States and UTs with Legislature on a back-to-back basis to meet the resource gap due to the short release of Compensation on account of inadequate amount in the Compensation Fund. This amount is as per the principles adopted for a similar facility in FY 2020-21, where an amount of ₹1.10 la
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talment. The balance amount will be released in the second half of 2021-22 in steady instalments. The release of ₹75,000 crore being made now is funded from borrowings of GoI in 5-year securities, totalling ₹68,500 crore and 2-year securities for ₹6,500 crore issued in the current financial year, at a Weighted Average Yield of 5.60 and 4.25 percent per annum respectively. It is expected that this release will help the States/UTs in planning their public expenditure among other things, for improving, health infrastructure and taking up infrastructure projects. State/ UTs wise amount released as Back to Back Loan in lieu of GST Compensation Shortfall on 15.07.2021 (in Rs. Crore) Sl. No. Name of the State/ UTs GST Compensation shortfall released 5 year tenor 2 year tenor Total 1. Andhra Pradesh
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.73 10. Karnataka 7801.86 740.31 8542.17 11. Kerala 3765.01 357.26 4122.27 12. Madhya Pradesh 3020.54 286.62 3307.16 13. Maharashtra 5937.68 563.43 6501.11 14. Meghalaya 60.75 5.76 66.51 15. Odisha 2770.23 262.87 3033.10 16. Punjab 5226.81 495.97 5722.78 17. Rajasthan 3131.26 297.13 3428.39 18.
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