GST, goods and services tax

Kerala, West Bengal opt for Centre’s special GST compensation window





and have accepted the Centre’s option of a special window for compensation to states for their goods and services tax (GST) shortfall. This has brought the total number of states that have accepted this option to 25. Now there are only three – Punjab, Jharkhand and Chhattisgarh – that are yet to accept. Three Union Territories – Delhi, Jammu and Kashmir and Puducherry – have also decided in favour of the special window facilitated by the Centre.


The window, which totalled Rs 1.1 trillion, has been operationalised by the Centre since October 23. The Union government has already borrowed Rs 24,000 crore on behalf of states in four instalments and passed it on to states and UTs that have opted for this option. Now, and will also receive funds through this route.



Besides this window, states are also entitled to an unconditional permission to borrow up to 0.5 per cent of their respective gross state domestic product (GSDP). But this permission is given only to those states that have opted for the special window. As such, has been given the permission to borrow Rs 4,522 crore and Rs 6,787 crore from the markets.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor








Source link



Leave a Reply

Your email address will not be published. Required fields are marked *