The resolution got here a day after the GST Council assembly failed to succeed in a consensus on the stalemate over the Centre’s proposal of states borrowing towards future GST collections to make up for the shortfall.
The Centre on Tuesday permitted 20 States to lift ₹68,825 crore by open market borrowings to bridge the GST income shortfall.
The resolution got here a day after the GST Council assembly failed to succeed in a consensus on the stalemate over the Centre’s proposal of States borrowing towards future GST collections to make up for the shortfall.
The projected whole compensation shortfall within the present fiscal stands at ₹2.35 lakh crore.
The Centre had in August given two choices to the States — to borrow both ₹97,000 crore from a particular window facilitated by the RBI or ₹ 2.35 lakh crore from the market. It had additionally proposed extending the compensation cess levied on luxurious, demerit and sin items past 2022 to repay the borrowing.
The Department of Expenditure, Ministry of Finance, has granted permission to 20 States to lift a further quantity of ₹68,825 crore by open market borrowings, an official assertion stated on Tuesday.
“Additional borrowing permission has been granted at the rate of 0.50% of the Gross State Domestic Product (GSDP) to those States who have opted for Option- 1 out of the two options suggested by the Ministry of Finance to meet the shortfall arising out of GST implementation,” it stated.
In the assembly of the GST Council held on August 27, it stated, these two choices had been put ahead and had been subsequently communicated to the States on August 29.
“Twenty States have given their preferences for Option-1. These States are – Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Sikkim, Tripura, Uttar Pradesh and Uttarakhand. Eight States are yet to exercise an option,” it stated.