Govt releases Rs 6,000 crore for GST compensation under special borrowing window

New Delhi: Central Government has released Rs 6,000 crore as second tranche to 16 states and 3 Union Territories on account of GST compensation under Special Borrowing Window.

Ministry of Finance has facilitated loans of Rs 12,000 crore till date under the Special Window to States/UTs.

“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 6000 crore as second tranche to 16 States and 3 Union Territories today. This amount was raised at a weighted average yield of 4.42 per cent. This amount will be passed on to the States/UTs at the same interest rate, which is lower than the cost of borrowings for the States and UTs, thus benefitting them. Ministry of Finance has facilitated loans of Rs 12,000 crore till date under the Special Window to States/UTs,” an official release said on Monday.

21 States and 3 Union Territories till date, have opted for the Special Window under Option I. The loans raised by government are released on a back-to-back basis to States/UTs, in lieu of GST Compensation Cess releases.

The loans have been released to the following States and Union Territories – Andhra Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Meghalaya, Odisha, Tamil Nadu, Tripura, Uttar Pradesh, Uttarakhand, UT of Delhi, UT of Jammu and Kashmir and UT of Puducherry.
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