Releasing the tenth weekly installment of the Goods and Services Tax (GST) compensation, the Union Finance Ministry on Monday transferred Rs 6,000 crores to the states and UTs. As per the Finance Ministry, a sum of Rs 5,516.60 crore has been released to 23 states and, an amount of Rs 483.40 crore has been released to three Union Territories (UT) namely Delhi, Jammu & Kashmir and Puducherry which are members of the GST Council. The remaining states namely Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have pending gaps in GST compensation.
Under the tenth weekly transfer, the amount has been borrowed this week at an interest rate of 4.1526 per cent with the special borrowing window at an average interest rate of 4.6892 percent.
About twenty-one states and three UTs, have opted for the Special Window under Option I, as per the Union Ministry of Finance. The loans raised by the Centre are being released on a back-to-back basis to states/UTs, in substitute of GST Compensation Cess releases.
On October 24, the Centre had released the first tranche of pending dues, transferring Rs 6000 crores to the states and UTs amid shortfall. According to the details put out by the Ministry of Finance, the borrowing has been set at an interest rate of 5.19 per cent and is intended to make weekly releases of Rs 6,000 crore to the States. The tenor of borrowing is expected to be broadly in the range of 3 to 5 years.