Jharkhand will get Rs 1,689 crore through a special borrowing window to meet the GST implementation shortfall after it accepted the first borrowing option to bridge the gap in the Goods and Services Tax revenue receipts.

“All the 28 states and three Union Territories with legislature have decided to go for option 1 to meet the revenue shortfall arising out of the GST implementation. Jharkhand, the only remaining state, has now communicated its acceptance of option 1. All the three Union Territories with Legislative Assembly that are members of the GST Council have already decided in favour of option 1,” the finance ministry said in a statement.

The ministry said the state has been given “permission to raise an additional Rs 1,765 crore through borrowings also issued to Jharkhand”.

The Centre has set up the window to borrow on behalf of the states the shortfall arising out of the GST implementation. The window has been operationalised since October 23 and the Centre has borrowed an amount of Rs 30,000 crore so far in five instalments. Jharkhand will receive funds raised through the window from the next round of borrowing on December 7.

That day the Centre will borrow Rs 6,000 crore for all states and three UTs.

The states who opt for the special window also get permission from the Centre to borrow 0.5 per cent of their respective gross states domestic product (GSDP) from the markets. As such, Jharkhand has been given permission to borrow an additional amount of Rs 1,765 crore.

Under 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 entitled to get unconditional permission to borrow the final instalment of 0.50 per cent of the Gross State Domestic Product (GSDP) out of the 2 per cent additional borrowings permitted by the Government of India, under Atmanirbhar Abhiyaan on May 17, 2020. This is over and above the special window of Rs 1.1 lakh crore.

Recently, Punjab, Chhattisgarh, Kerala and Bengal also accepted the Centre’s proposal after much opposition. In all, 27 states and three Union Territories have accepted Option 1.