Srinagar: The Centre has released Rs 967.32 crore to Jammu and Kashmir to help the Union Territory meet the shortfall in goods and services tax (GST).
The amount has been released under the back-to-back loan facility to meet the resource gap due to the shortfall in the collection of the GST in the Union Territory.
With this amount, the centre released Rs 2781.05 crore in the last four month including Rs 1813.73 crore as GST compensation to Jammu and Kashmir in July.
Due to the COVID-19, all the states have witnessed shortfall in the collection of GST across India.
To tide over the resource gap of states, the central government has released an amount of Rs 40,000 crore to the States and UTs with legislature under the back-to-back loan facility.
Earlier on 15th July, 2021 an amount of ₹75,000 crore was released to the States & UTs with legislature. With the current release, the total amount released in the current financial year as back to back loan in-lieu of GST compensation has reached to ₹1,15,000 crore.
An official from the finance department said that they have received an amount of Rs 967.32 under a special borrowing scheme to meet the GST shortfall.
“J&K so far has received an amount of Rs 8367.32 as GST compensation since 2017”
He said the J&K so far has received an amount of Rs 8367.32 as GST compensation since 2017 when the centre implemented GST in the erstwhile state.
Karnataka and Gujarat have received the highest GST compensation of Rs 4555 crores, followed by Maharashtra and Punjab at Rs 3467 crores and Rs 3052 crores, respectively.
North eastern states including Meghalaya and Tripura have recorded lowest GST compensation from the centre, which is Rs 35.47 crore and Rs 100.88 crore, respectively.
As per provisions in Section 7 of the GST (Compensation to States) Act, 2017, loss of revenue to the states on account of implementation of Goods and Services Tax shall be payable during the transition period.
Similarly, the compensation payable to a state shall be provisionally calculated and released at the end of every two months during a transition period of five years.