GST compensation of Rs 6,000 crore released to the states

GST compensation of Rs 6,000 crore released to the states

Following the recent commitment to provide GST compensation to the state government mandated under the GST law by the central government, the Narendra Modi government has released its first amount of Rs 6,000 crores. The 16 states who received the financial aid are Assam, Andhra Pradesh, Bihar, Haryana, Himachal Pradesh, Gujarat, Goa, Karnataka, Madhya Pradesh, Maharashtra, Meghalaya, Odisha, Tamil Nadu, Uttarakhand, Uttar Pradesh, Tripura and the 2 union territories including Delhi and Jammu and Kashmir.

Indian-rupee

With the borrowing tenure estimated to be around 3 to 5 years and the interest of 5.9%, the central government will be releasing the weekly amount of Rs 6,000 crore to the states.

It is to be noted that the five receiving states in the list have earlier cleared to not having any shortfall on account of GST compensation. While the 21 states and 2 union territories demanded the center to initiate the back-to-back borrowing under the Ministry of Finance. Thus making the centre to announce the arrangement of GST compensation of nearly Rs. 1.1 lakh crore to the states as the back-to-back loan facility.

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