GST compensation shortfall: Centre releases Rs 6,000 crore as second tranche to 16 states, 3 UTs – Times of India

It had evolved a special borrowing window to address the shortfall in GST collection during the year 2020-21. This special window was opted for by twenty-one states and three union territories.
“The loans raised by government are released on a back-to-back basis to states/UTs, in lieu of GST compensation cess releases. The loans have been released to the following states and union territories – 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 statement said.

The Centre had in August proposed two options to states: Borrow Rs 97,000 crore (on account of GST implementation) from a special window facilitated by the RBI or the complete shortfall of Rs 2.35 lakh crore (including Rs 1.38 lakh crore due to COVID) from the market.
The options have since been revised to Rs 1.10 lakh crore and Rs 1.8 lakh crore, respectively.
(With agency inputs)