GST collection crosses Rs 1 trillion for third straight month in May

A Total Amount of INR.42,000 Crore Released So Far to All States and UTs with Legislation

The amount released this week was the 7th instalment of such funds provided to the States. The amount has been borrowed this week at an interest rate of 5.1348%. So far, an amount of Rs.42,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.7712%.

The Ministry of Finance has released the 7th weekly instalment of Rs.6,000 crore to the States to meet the GST compensation shortfall. Out of this, an amount of Rs.5,516.60 crore has been released to 23 States and an amount of Rs.483.40 crore has been released to the 3 Union Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir & Puducherry) who are members of the GST Council. The remaining 5 States, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation.

The Government of India had set up a special borrowing window in October, 2020 to meet the estimated shortfall of Rs.1.10 Lakh crore in revenue arising on account of implementation of GST. The borrwoings are being done through this window by the Government of India on behalf of the States and UTs.  The borrowings have been done in 7 rounds. The amount borrowed so far was released to the States on 23rd October, 2020, 2nd November, 2020, 9th November, 2020, 23rd November, 2020, 1st December, 2020, 7th December, 2020 and 14th December, 2020.

The amount released this week was the 7th instalment of such funds provided to the States. The amount has been borrowed this week at an interest rate of 5.1348%.  So far, an amount of Rs.42,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.7712%. 

In addition to providing funds through the special borrowing window to meet the shortfall in revenue on account of GST implementation, the Government of India has also granted additional borrowing permission equivalent to 0.50 % of Gross States Domestic Product (GSDP) to the states choosing Option-I to meet GST compensation shortfall to help them in mobilising additional financial resources. All the States have been given their preference for Option-I. Permission for borrowing the entire additional amount of Rs.1,06,830 crore (0.50 % of GSDP) has been granted to 28 States under this provision.

The amount of additional borrowing permission granted to 28 States and the amount of funds raised through special window and released to the States and 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 14.12.2020

(Rs. in Crore)

S. No.Name of State / UTAdditional borrowing of 0.50 percent allowed to StatesAmount of fund raised through special window passed on to the States/ UTs
1Andhra Pradesh50511055.79
2Arunachal Pradesh*1430.00
3Assam1869454.36
4Bihar32311783.74
5Chhattisgarh1792338.52
6Goa446383.66
7Gujarat 87044212.94
8Haryana42931988.26
9Himachal Pradesh 877784.43
10Jharkhand1765183.90
11Karnataka90185668.31
12Kerala4,522956.04
13Madhya Pradesh47462075.07
14Maharashtra153945472.11
15Manipur*1510.00
16Meghalaya19451.09
17Mizoram*1320.00
18Nagaland*1570.00
19Odisha28581746.13
20Punjab30331385.96
21Rajasthan54621408.42
22Sikkim*1560.00
23Tamil Nadu96272851.46
24Telangana5017559.02
25Tripura297103.50
26Uttar Pradesh97032744.29
27Uttarakhand14051058.28
28West Bengal6787734.68
 Total (A):10683037999.96
1DelhiNot applicable2679.39
2Jammu & KashmirNot applicable1037.91
3PuducherryNot applicable282.74
 Total (B):Not applicable4000.04
 Grand Total (A+B)10683042000.00

* These States have ‘NIL’ GST compensation gap


Source: PIB