Indian govt releases Rs 967 crore as GST compensation to J&K

INTERNATIONAL DESK: India’s Ministry of Finance on October 7 allocated Rs 967 crore to J&K as GST compensation.

The Centre has also released Rs 2,780 crore as Goods and Services Tax (GST) compensation to Jammu and Kashmir in the last four months under a special borrowing scheme of the central government.

Earlier on July 15, J&K was given Rs 1,813 crore which took the total of compensation received by J&K to Rs 2,780 crore since July.

The Indian government has doled out GST compensation after the Covid pandemic affected the economy badly; there was a shortfall in GST collection.

To tide over the resource gap of states, Centre has released Rs 40,000 crore as GST compensation out of which J&K will get Rs 967 crore.

A senior finance department official informed that Rs 967 crore has been released to J&K under a special borrowing scheme to meet the GST shortfall.

In July, the union territory received Rs 1,813 crore.

He further informed J&K has received over Rs 8,200 crore as GST compensation from July 2017 till date from centre post implementation of one tax one country regime.

In July, the Centre had released Rs 75,000 crore GST compensation of which J&K received Rs 1,813 crore.

As per the official statement of the union finance ministry, an amount of Rs 40,000 crore was released to the states and UTs with legislature under the back-to-back loan facility to meet the shortfall in GST compensation. (India Blooms)