The GST revenue shortfall faced by states is likely to reduce by about Rs 40,000 crore in the current fiscal on improved collections over the past four months, an official said.
The sharp decline in GST collections was estimated to lead to a Rs 1.80 lakh crore shortfall in the GST revenues of states. This includes Rs 1.10 lakh crore revenue loss on account of GST implementation and Rs 70,000 crore on account of the COVID-19 pandemic.
The center had set up a special window to borrow funds and pass them on to the states for meeting the Rs 1.10 lakh crore GST revenue loss.
The official said that improved goods and services tax (GST) collections could bring down the total shortfall amount to around Rs 1.40 lakh crore.
“We have done some calculations which show that the shortfall could be lower by about Rs 30,000-40,000 crore in the current fiscal,” the official told PTI.