GST Council to satisfy over compensation controversy

Tribune News Service

New Delhi, September 9

The GST Council will meet on Thursday to take a name on assembly the shortfall in GST compensation to states.

With the expiry of the one-week deadline on Tuesday, the stand of solely 17 of the 31 states is publicly identified.

While 10 states have turned down Union Finance Minister Nirmala Sitharaman’s two choices for making good the shortfall, seven have indicated their settlement. The views of 14 states weren’t in public area.

In order to interrupt down the resistance, the Centre has softened its stand and stated it was dedicated to creating good the whole shortfall of Rs 2.35 lakh crore.

Under Sitharaman’s first possibility, GST associated shortfall was estimated at Rs 97,000 crore and the remaining was as a consequence of “hand of God” (Covid-related disruption). States accepting this feature got leeway to borrow extra from the market.

The second possibility offers the states the whole quantity however additional borrowing is conditional. However, the states additionally need the Centre to borrow from the RBI on their behalf.

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