Chhattisgarh accepts Option-1 to meet GST implementation shortfall

Raipur, Dec 3: Chhattisgarh state govt has chose to accept Option-1 in order to meet the revenue shortfall arising out of GST implementation. With Chhattisgarh's decision, now Jharkhand remains to be the only Indian state to not stand in favor of the Option-1.

The number of states which are in favour of Option-1 has now gone up to 27, with the exception of Jharkhand and all the 3 Union Territories of Delhi, Jammu and Kashmir and Puducherry. The States and Union Territories which have chosen Option-1, are getting the amount of shortfall arising out of GST implementation through a special borrowing window put in place by the Central Government. The window has been operationalized since Oct 23, this year.

 

The Centre has already borrowed an amount of Rs 30 thousand crore on behalf of the States in five installments. The amount has also been passed on to the States and Union Territories.

 

According to the terms of Option-1, besides getting the facility of a special window for borrowings to meet the shortfall arising out of GST implementation, the states are also entitled to get unconditional permission to borrow the final installment of 0.50 per cent of Gross State Domestic Product (GSDP) out of the 2 per cent additional borrowings permitted by the Centre.