GST Revenue Shortfall: All States Choose Option-1
All the 28 states and three Union Territories (UT) with legislature have decided to go for Option-1 to meet the revenue shortfall arising out of the Goods and Services Tax (GST) implementation, an official statement from the Ministry of Finance said.
Jharkhand, the only remaining state, has now communicated its acceptance of Option-1, it said.
The Central government has set up a special borrowing window for the states and the UTs who choose Option-1 to borrow the amount of shortfall arising out of GST implementation.
"The window has been operationalised since 23rd October 2020 and the Government of India has already borrowed an amount of Rs 30,000 crores on behalf of the States in five installments and passed it on to the States and Union Territories, who chose Option-1," the release said.