Puducherry joins govt’s borrowing plan for GST

Puducherry is the latest addition in the list of 21 states and two Union territories (UTs) to accept the Centre’s proposal to borrow Rs 1.1 lakh crore on behalf of states.

Updated on: Nov 4, 2020, 06:36:54 IST

Hindustan Times, New Delhi | By Anonymous

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Puducherry is the latest addition in the list of 21 states and two Union territories (UTs) to accept the Centre’s proposal to borrow Rs 1.1 lakh crore on behalf of states, which is part of the estimated Rs 2.35 lakh crore shortfall in Goods and Services Tax (GST) compensation cess, as the Union finance ministry on Monday announced the release a second tranche of Rs 6,000 crore to states and UTs.

Seven states—Chhattisgarh, Jharkhand, Kerala, Punjab, Rajasthan, Telangana and West Bengal—are yet to accept the Centre’s proposal as they want full compensation of Rs 2.35 lakh crore, two government officials said requesting anonymity. The seven dissenting states are

“The ministry of finance, Government of India, under its ‘Special Window to States for meeting the GST Compensation Cess shortfall,’ will be releasing an amount of Rs 6,000 crore as second tranche to 16 States and 3 Union Territories today,” the government stated in an official statement.

The previous tranche was released on October 23.

Puducherry

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