Supreme Court: GPF Nomination in Favour of a Parent Becomes Invalid Once the Employee Marries  ||  Supreme Court: Candidate Not Disqualified if Core Subject Studied Without Exact Degree Title  ||  Supreme Court: Stamp Duty Relief for Co-Operative Societies Cannot Depend on Extra-Legal Verification  ||  Delhi High Court: Allegations of Forgery Alone Do not Bar NCLT From Examining Company Records  ||  J&K&L HC: Only Revenue Authorities Can Handle Agrarian Resumption; Civil Courts Cannot Intervene  ||  Delhi HC: CAPF Candidate's Height of 164.6 Cm Can be Rounded to 165 Cm; Rejection Prima Facie Illegal  ||  NCLT Mumbai: Bank Cannot Retain OTS Earnest Money After Accepting a Resolution Plan  ||  Supreme Court: Imminent Death Not Required For a Statement to Qualify as Dying Declaration  ||  SC: HC Cannot Grant Pre-Arrest Bail Without Quashing FIR; Accused Must Approach Sessions Court First  ||  SC: Agreed Interest Rate Cannot Be Challenged as Exorbitant; Arbitrator Cannot Override Contract    

Special Window to States for meeting the GST Compensation Cess shortfall- (Press Information Bureau) (15 Oct 2020)

MANU/PIBU/3657/2020

Goods and Services Tax

Under Option-I States were to be provided a Special Window of Borrowing of Rs. 1.1 lakh cr, and over and above that, an authorisation for additional Open Market Borrowings of 0.5% of their GSDP. The authorisation for increased OMBs of 0.5% of GSDP has been issued by Ministry of Finance on 13th October and are in relaxation of the reform conditions that were stipulated for eligibility. Additionally, under Option-I, the States are also eligible to carry forward their unutilised borrowing space to the next Financial Year.

Under the Special Window, the estimated shortfall of Rs. 1.1 lakh cr. (assuming all States join) will be borrowed by Government of India in appropriate tranches.

The amount so borrowed will be passed on to the States as a back-to-back loan in lieu of GST Compensation Cess releases.

This will not have any impact on the fiscal deficit of the Government of India. The amounts will be reflected as the capital receipts of the State Governments and as part of financing of its respective fiscal deficits.

This will avoid differential rates of interest that individual States may be charged for their respective SDLs and will be an administratively easier arrangement.

It may also be clarified that the General Government (States+Centre) borrowings will not increase by this step. The States that get the benefit from the Special Window are likely to borrow a considerably lesser amount from the additional borrowing facility of 2% of GSDP (from 3% to 5%) under the Aatma Nirbhar Package.

Tags : SPECIAL WINDOW   STATES   GST COMPENSATION CESS   SHORTFALL  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved