Chhattisgarh accepts GST recompense formula
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Chhattisgarh has accepted the choice supplied by the Centre’s to satisfy the GST compensation shortfall for States by way of a particular borrowing window, the Finance Ministry mentioned on Thursday. Jharkhand is now the one State but to resolve on the matter.
With Chhattisgarh’s acquiescence to the Centre’s formulation to resolve the GST compensation with States, all States, barring Jharkhand, and all union territories have now come on board. “The number of States who have favoured Option-1 has gone up to 27,” the Finance Ministry mentioned.
Under Option-1, the Centre had supplied States the choice of borrowing ₹1.1 lakh crore out of the estimated ₹ 2.35 lakh crore shortfall in compensation dues payable to States for this yr. After initially asking States to undertake the borrowings themselves, the Centre had later supplied to borrow on States’ behalf and lend it onwards.
Over the previous week, a lot of the States that had reservations with the Centre’s association, together with Kerala, West Bengal and Punjab, have communicated their acceptance of Option-1.
Chhattisgarh will get ₹3,109 crore by way of the particular borrowing window and has been permitted to borrow a further ₹1,792 crore. So far, ₹30,000 crore has been raised in 5 instalments by way of the particular borrowing window that was operationalised in late October.
“Chhattisgarh will also receive funds raised through this window starting from the next round of borrowing,” the Ministry mentioned.
All repayments for these particular borrowings can be paid from future collections of GST cess, whose validity has been prolonged past the initially envisaged sundown date of June 2022.
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