GST shortfall: Puducherry accepts Centre's compensation proposal

Puducherry is the latest in a failure in the states and federal territories to accept the center's proposal to borrow 1.1 trillion rupees to make up for the shortfall in GST (goods and services tax) collections. This occurred when the center released its second batch of payments on Monday.

Puducherry is the latest in a failure in the states and federal territories to accept the center's proposal to borrow 1.1 trillion rupees to make up for the shortfall in GST (goods and services tax) collections. This occurred when the center released its second batch of payments on Monday.

The Ministry of Finance has borrowed and the second installment of Rs. 6,000 crore has been transferred to 16 states and three UT units under a special loan window. Loans obtained by the Center were continuously released.

However, seven opposing states, including Kerala, West Bengal, Punjab and Jharkhand, had not yet accepted the proposal and therefore had not received the amount loaned.

By the way, Puducherry's prime minister in Narayanasamy Business Standard said last week that the state would not accept the centre's proposal and urged it to borrow the full amount.

So far, 21 countries and three United States have accepted the proposal. Of these five states, Manipur, Nagaland, Mizoram, Arunachal Pradesh and Sikkim, there is no shortage.

GST collections stand at Rs 87,422 crore in July 2020 as against Rs  1,02,082 crore in July 2019 | Economy News | Zee News

This amount has increased with a weighted average profitability of 4.42%. "It will pass to the states / UT at the same interest rate, which is lower than the cost of loans to the states and UT," the government said in a statement Monday. So far, the Ministry of Finance has provided loans of 12 billion rupees under the special window.

Loans to Andhra Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Meghalaya, Odisha, Tamil Nadu, Tripura, Uttar Pradesh, Uttarakhand, Delhi, Jammu and Kashmir, Minister of Description Director Puducherry Kerala financier, TM Thomas Isaac, implemented this option (borrow 1.1 trillion rupees) without the GST Board making a formal decision to extend compensation payments beyond 5 years, as it is illegal.

"The board has extended the collection period beyond 2022 and has not said that it will compensate countries for remaining deficits of more than 1.1 trillion rupees. The GST board should meet and seek consensus," he said. To a commercial standard.

Kerala's Chief Minister Pinaray Vijayan urged Federal Finance Minister Nirmala Sitharaman to hold more talks and raise the ceiling under the special window to 1.83 trillion rupees. Meanwhile, the Jharkhand government has officially rejected the center's proposal.

Finance Minister Ajay Pushan Pandey told Business Standard in an interview that the center remains committed to the seven opposition countries and will continue to persuade them. He said, "You can join anytime."

The fiscal deficit for goods and services is expected to narrow with the strong conglomerates seen in September and October, when they reached 1.05 trillion rupees, up 10 percent year-on-year.

Also Read: India’s trade deficit in October narrows to $8.78 bn, exports fall 5%

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