Back-to-back loan facility for GST compensation shortfall enables frontloaded state funding to support pandemic response and capital projects.
The Central Government released a tranche under the back-to-back loan facility to States and UTs with legislatures to address GST compensation shortfalls, with all eligible recipients agreeing to the funding mechanism; the loans are intended to support pandemic response and capital expenditure. The tranche is financed from five-year Central borrowings issued in the current financial year at a stated weighted average yield and is not expected to require additional market borrowing, and a recipient-wise allocation schedule accompanies the release.

GST evasion enforcement: arrests for fake firms and fraudulent input tax credit, ongoing probe and seizures.
Arrests were effected under the GST Act for operating multiple fake firms and fake billing schemes that generated and utilised fraudulent input tax credit to defraud the exchequer; investigative seizures included falsified stamps, banking instruments, transporter and weighing records and other papers used to substantiate sham transactions, three persons have been arrested and remanded to judicial custody while further probe continues.

Input Tax Credit availability: late supplier records after return deadline will not be reflected or auto populated for recipients.
Availability of Input Tax Credit depends on timely reporting of supplier invoices and debit notes by the return filing deadline; records reported after that deadline will be shown as ITC Not Available in the recipient's reconciliation and will not auto populate into the recipient's return, and recipients claiming credit contrary to these timing rules may face action by tax authorities.

Input Tax Credit availability: auto-drafted statement shows ITC based on supplier returns and monthly availability.
Form GSTR-2B is an auto-drafted Input Tax Credit statement that indicates, for each supplier-filed document, whether ITC is available to the recipient; it is generated from supplier-filed returns and input service distributor information and published to taxpayers on a monthly cycle to assist in ITC reconciliation and GST return compliance.

Fraudulent Input Tax Credit claim leads to arrest for alleged IGST refund fraud and ongoing GST investigation.
Central GST officers uncovered a network of fictitious exporters that allegedly availed and utilized fake Input Tax Credit to claim unlawful IGST refunds. Risk analysis identified a risky exporter and e way bill tracing showed purported supplies inconsistent with vehicle movements, supporting a coordinated scheme. An individual alleged to have masterminded the network was arrested and remanded to judicial custody; further criminal investigation by tax authorities is ongoing.

Post Devolution Revenue Deficit Grant released to eligible states under constitutional provision following Fifteenth Finance Commission recommendations.
The Department of Expenditure released the seventh monthly instalment of the Post Devolution Revenue Deficit Grant, disbursing Rs. 9,871 crore to 17 eligible States under the Fifteenth Finance Commission framework, raising total releases in 2021 22 to Rs. 69,097 crore of a recommended Rs. 1,18,452 crore; eligibility and quantum were based on the assessed gap between State revenue and expenditure after accounting for devolution.

Back-to-back loan facility funds States to cover GST compensation shortfall and support health and infrastructure spending.
The Central Government released funds to States and Union Territories with legislatures under a back-to-back loan facility to meet the GST compensation shortfall, passing through central borrowings on specified tenor tranches to bridge gaps from inadequate cess collections; eligible units agreed to the arrangement, which is additional to routine cess-based compensation and is frontloaded to assist public expenditure planning, health infrastructure and capital projects, with allocations set out by State and tenor tranche.

GST revenue collection rises, signalling recovery and higher Centre-State settlements after regular IGST transfers and compliance boost.
The release reports gross GST revenue collected for September 2021 by component and notes that regular IGST transfers to CGST and SGST increased total Centre and State receipts after settlement; it records higher receipts versus the prior year, stronger import and domestic transaction revenues, rising average quarterly collections as an indicator of economic recovery, contributions from anti evasion measures, and a state wise table showing varied jurisdictional growth.