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100% of estimated GST compensation shortfall of Rs 1 1 trn released: Govt

The Finance Ministry has released the final weekly instalment of Rs 4,104 crore to the states to meet the GST compensation shortfall. Out of this, an amount of Rs 4,086.97 crore has been released to 23 states and Rs 17.03 crore to 3 Union Territories with Legislative Assemblies. With the current release, 100 percent of the total estimated GST compensation shortfall of Rs 1.1 trillion for year 2020-21 has now been released to the states and UTs with Legislative Assemblies. Out of this, an amount of Rs 101,329 crore has been released to the states and Rs 8,879 crore to the 3 UTs with Legislative Assemblies. The Central government had set up a special borrowing window in October 2020 to meet the estimated shortfall of Rs 1.1 trillion 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.

Centre: 100% GST compensation shortfall released to States and UTs

March 15, 2021 Wooden letters GST and money coin stack on red table background, financial concept   -  istock.com/ePhotocorp Wooden letters GST and money coin stack on red table background, financial concept   -  istock.com/ePhotocorp× ICRA estimates compensation requirement for FY 22 at Rs 1.6-2 lakh crore The Finance Ministry on Monday claimed that full amount of the estimated GST compensation shortfall of ₹1.10 Lakh crore for FY 2020-21 has been released to States and Union Territories with legislative assemblies. Meanwhile, economic research agency ICRA has estimated GST compensation requirement of the state governments for FY 2021-22 at ₹2.7-3-lakh crore and the shortfall relative to the assessed cess collections at ₹1.6-2-lakh crore.

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