Centre pays J&K Rs 2000 Cr to tide over revenue shortfall
TNN Bureau. Updated: 9/21/2020 11:33:41 AM
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JAMMU: Centre has opened its purse strings and paid more than Rs 2000 crore to Jammu and Kashmir government as Goods and Service Tax (GST) compensation after the union territory recorded a shortfall in the revenue collection due to the Covid-19 pandemic.
Jammu and Kashmir is one of the most affected states and union territories due to COVID. There has been a dip of more than 25 percent in the GST collection so far.
Against nearly Rs1700 crore last year in the first quarter, Jammu and Kashmir has realized Rs 1,169 crore GST this year (April-August).
To compensate the shortfall, the Centre released Rs 2104 crores for Jammu and Kashmir.
This is much higher than Himachal Pradesh, Puducherry and Goa, which received Rs 1623, 564, 987crore respectively as GST compensation this year so far.
Maharashtra has received Rs 22485 GST compensation.
Arunachal Pradesh is the only state in India, which has not sought GST compensation for the shortfall in the realization of the cess.
GST compensation for 28 state governments and three Union Territories for April-July have been pegged at Rs 1.51 lakh crore.
Last month, the Centre gave states two options for borrowing the shortfall in GST compensation. One included the shortfall arising out of GST implementation (calculated at Rs. 97,000 crores approximately). It will be borrowed by States through the issue of debt under a Special Window coordinated by the Ministry of Finance.