Now Jharkhand also chooses Option-1 to meet GST income setback

On Saturday, the Ministry of Finance said that all the 28 states and 3 union territories with the legislature have decided to choose Option-1 to meet the revenue setback bottle out of the Goods and Services Tax implementation.

Previously, Jharkhand was standing opposite of 27 states on choosing Option-1 but now it has also accepted.

The Ministry of Finance said, “The government has set up a special borrowing window for the states and union territories who choose Option-1 to borrow the amount of shortfall arising out of GST implementation. The window has been operationalized since October 23, 2020, and the government has already borrowed a number of Rs 30,000 crores on behalf of the states in five instalments and passed it on to the states and union territories, who chose Option-1.”

Under this term, other than getting the office of an extraordinary window for borrowings to meet the deficiency emerging out of GST execution, the states are likewise qualified to get unlimited consent to get the last portion of 0.50 percent of Gross State Domestic Product (GSDP) out of the 2 percent moreover borrowings allowed by the Government of India, under Atmnirbhar Abhiyaan on 17 May 2020.

On receipt of Option-1, the government has granted additional borrowing permission of Rs 1,765 crores to the state government of Jharkhand, the ministry said.

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