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TMI BlogTwo more States - Kerala and West Bengal choose Option-1 to meet the GST implementation shortfallX X X X Extracts X X X X X X X X Extracts X X X X ..... Two more States - Kerala and West Bengal choose Option-1 to meet the GST implementation shortfall - Goods and Services Tax - GST Dated:- 25-11-2020 - News - Two more States - Kerala and West Bengal choose Option-1 to meet the GST implementation shortfall 25 States and all Union Territories with Legislative Assembly have favoured Option-I Kerala and West Bengal will get ₹ 10,197 crore through special borrowing window to meet the GST implementation shortfall. Permission to raise additional ₹ 11,309 crore through borrowings also issued to Kerala and West Bengal. Governments of Kerala and West Bengal have communicated their acceptance of Option-1 to meet the revenue shortfall arising out of GST implementation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The number of States who have chosen this option has gone up to 25. All the 3 Union Territories with Legislative Assembly (i.e. Delhi, Jammu Kashmir and Puducherry) have also decided in favour of Option-1. The States Union Territories who choose Option-1 are getting the amount of shortfall arising out of GST implementation through a special borrowing window put in place by the Government of India. The window has been operationalised since 23 rd October, 2020 and the Government of India has already borrowed an amount of ₹ 24,000 crore on behalf of the States in four instalments and passed it on to the States and Union Territories, who chose Option -1 on 23 rd October, 2020, 2 nd November, 2020, 9 th N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovember, 2020 and 23 rd November, 2020. Now the State of Kerala and West Bengal will also receive funds raised through this window starting from the next round of borrowings. 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% of Gross State Domestic Product (GSDP) out of the 2% additional borrowings permitted by the Government of India, under Atmnirbhar Abhiyaan on 17 th May, 2020. This is over and above the Special Window of ₹ 1.1 lakh crore. On receipt of the choice of Option-1 from the Government of Kerala a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd West Bengal, the Government of India has granted additional borrowing permission of ₹ 4,522 crore to the State Government of Kerala (0.5% of Kerala s GSDP) and ₹ 6,787 crore to the State Government of West Bengal (0.5% of West Bengal s GSDP) . The amount of additional borrowing permission granted to 25 States and the amount of funds raised through special window and released to the 23 States and 3 Union Territories so far is annexed. State wise additional borrowing of 0.50 percent of GSDP allowed and amount of funds raised through special window passed on to the States/UTs till 23.11.2020 (Rs. in Crore) S. No. Name of State / UT Additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal borrowing of 0.50 percent allowed to States Amount of fund raised through special window passed on to the States/ UTs 1 Andhra Pradesh 5051 672.61 2 Arunachal Pradesh* 143 0.00 3 Assam 1869 289.54 4 Bihar 3231 1136.27 5 Goa 446 244.39 6 Gujarat 8704 268 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.88 7 Haryana 4293 1266.68 8 Himachal Pradesh 877 499.74 9 Karnataka 9018 3611.17 10 Kerala # 4,522 0.00 11 Madhya Pradesh 4746 1321.98 12 Maharashtra 15394 3486.24 13 Manipur* 151 0.00 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Meghalaya 194 32.51 15 Mizoram* 132 0.00 16 Nagaland* 157 0.00 17 Odisha 2858 1112.42 18 Rajasthan 5462 645.06 19 Sikkim* 156 0.00 20 Tamil Nadu 9627 1816.66 21 Telangana 5017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 164.41 22 Tripura 297 66.04 23 Uttar Pradesh 9703 1748.29 24 Uttarakhand 1405 674.27 25 West Bengal # 6787 0.00 Total (A): 100240 21472.16 1 Delhi Not applicable 1706.93 2 Jammu Kashmir Not applicable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 661.21 3 Puducherry Not applicable 159.70 Total (B): Not applicable 2527.84 Grand Total (A+B) 100240 24000.00 * These States have NIL GST compensation gap # Funds will be released starting from next round of borrowing. - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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