Centre to transfer Rs 6,000 crore as second tranche of GST compensation to 16 states, 3 UTs today

ANI
·1-min read
Representative image
Representative image

New Delhi [India], November 2 (ANI): The Union Finance Ministry will release an amount of Rs 6,000 crore as second tranche to 16 states and three Union Territories (UT) on Monday under the 'Special Window to States for meeting the GST Compensation Cess shortfall', according to an official statement.

The Ministry of Finance said the amount was raised at a weighted average yield of 4.42 per cent. This amount will be passed on to the states/UTs at the same interest rate, which is lower than the cost of borrowings for the states and UTs, thus benefitting them."

It further added that it has facilitated loans of Rs 12,000 crore till date under the 'Special Window to States/UTs'.

Twenty-one states and three UTs till date, have opted for the Special Window under Option I. The loans raised by Government of India are released on a back-to-back basis to states/UTs, in lieu of GST Compensation Cess releases.

The states and UTs are -- Andhra Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Meghalaya, Odisha, Tamil Nadu, Tripura, Uttar Pradesh, Uttarakhand, UT of Delhi, UT of Jammu and Kashmir and UT of Puducherry.

The Centre had transferred the first tranche on October 24.

Recently, the Centre gave in to the demands of opposition-ruled states to borrow and fund the GST compensation shortfall. (ANI)