Active Stocks
Fri Mar 01 2024 15:59:51
  1. Tata Steel share price
  2. 150.00 6.46%
  1. State Bank Of India share price
  2. 769.30 2.67%
  1. Tata Motors share price
  2. 977.20 2.78%
  1. ITC share price
  2. 409.50 0.74%
  1. ICICI Bank share price
  2. 1,086.90 3.18%
Business News/ Politics / Policy/  All states choose Option-1 to meet GST implementation shortfall
BackBack

All states choose Option-1 to meet GST implementation shortfall

The Central government has set up a special borrowing window for the states and the UTs who choose Option-1 to borrow the amount of shortfall arising out of GST implementation.

Jharkhand, the only remaining state, has now communicated its acceptance of Option-1,Premium
Jharkhand, the only remaining state, has now communicated its acceptance of Option-1,

All the 28 states and three Union Territories (UT) with legislature have decided to go for Option-1 to meet the revenue shortfall arising out of the Goods and Services Tax (GST) implementation, stated an official statement by the Ministry of Finance.

Jharkhand, the only remaining state, has now communicated its acceptance of Option-1, it said.

The Central government has set up a special borrowing window for the states and the UTs who choose Option-1 to borrow the amount of shortfall arising out of GST implementation.

"The window has been operationalised since 23rd October 2020 and the Government of India has already borrowed an amount of 30,000 crores on behalf of the States in five installments and passed it on to the States and Union Territories, who chose Option-1," read the release.

Now, the Jharkhand government will also receive funds raised through this window starting from the next round of borrowing.

The next installment of 6,000 crore will be released to the states/UTs on December 7.

According to the ministry, under the terms of Option-1, besides getting the facility of a special window for borrowings to meet the shortfall arising out of GST implementation, the states are also entitled to get unconditional permission to borrow the final instalment of 0.50 per cent of Gross State Domestic Product (GSDP) out of the 2 per cent additional borrowings permitted by the Government of India, under Atma Nirbhar Abhiyaan on May 17, 2020. This is over and above the Special Window of 1.1 lakh crore.

On receipt of the choice of Option-1, the Government of India has granted additional borrowing permission of 1,765 crore to the state government of Jharkhand (0.50 per cent of Jharkhand's GSDP).

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

Catch all the Politics News and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 05 Dec 2020, 01:24 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App