Centre softens stand on GST dues to states


Tribune News Services

New Delhi, September 8

On a day that noticed a number of Opposition-ruled states remaining adamant on being compensated for all the GST shortfall, the Centre stated it is going to be made good.

The assurance about “full compensation” would suggest that the portion ascribed to “hand of God” can even be transferred to the states.

The Centre’s assurance got here after a minimum of 9 states rejected the 2 choices provided by Union Finance Minister Nirmala Sitharaman and sought an early assembly of the GST Council. Those states that had been the primary to simply accept one of many two choices had been criticised by their political rivals for allegedly permitting themselves to be shortchanged by the Centre.

Punjab, Rajasthan, Chhattisgarh, Jharkhand, Puducherry Kerala, West Bengal, Telangana and Delhi have opposed each the choices whereas Karnataka, Assam and Bihar had been among the many first to decide on the primary of the 2 choices provided by Sitharaman to compensate states for Rs 2.35-lakh crore in GST dues.

Under the primary, the GST associated shortfall was Rs 97,000 crore whereas the remaining was misplaced as a result of “hand of God” (Covid-related disruptions). States got leeway to borrow extra from the market in the event that they accepted this selection. Under the second choice, the states would have gotten all the quantity however additional borrowing was conditional reminiscent of eliminating free rural electrical energy.



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