GST compensation due

Why is it in news?
  • According to the data from Finance Ministry, the compensation due to States stands at over Rs. 1.51 lakh crore.
Details:
  • The provisional GST compensation due to States and Union Territories (UTs) for 2020-21 was highest for Maharashtra at Rs. 22,485 crore.
  • Maharashtra is followed by Karnataka (Rs. 13,763 crore), Uttar Pradesh Rs. 11,742 crore), Gujarat (Rs. 11,563 crore) and Tamil Nadu (Rs. 11,269 crore).
  • In the current fiscal year, States are staring at a staggering Rs. 2.35 lakh crore GST revenue shortfall.
Borrowing Options:
  • The Centre late last month gave two options to States to borrow either Rs. 97,000 crore from a special window facilitated by the RBI or Rs. 2.35 lakh crore from the market.
Posted by Jawwad Kazi on 15th Sep 2020
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