Opposition states could strategy Supreme Court on GST shortfall

Sandeep Dikshit

Tribune News Service

New Delhi, August 28

Opposition states are coordinating strikes to strategy the Supreme Court beneath Article 131 of the Constitution to keep away from the chaos that might be created by Union Finance Minister Nirmala Sitharaman’s provide to individually enable them to borrow the shortfall in GST dues from the RBI, mentioned sources right here.

The sources mentioned no less than 9 states are in consensus with the transfer, however some amongst them really feel they need to first exhaust the political choice of approaching the President and the Prime Minister.  

Although Sitharaman had performed her sums whereas asserting that out of the shortfall of Rs 2,35,000 crore, solely Rs 97,000 crore was because of the states and the remaining was misplaced as a consequence of “hand of God”, the sources mentioned some states really feel that this problem ought to be finest contested within the political area whereas the query of borrowing might be explored legally.

Moreover, Delhi, which is among the many dissenters, can not come on board on the difficulty as a result of it isn’t allowed to borrow from different sources. The desire of the AAP Government will probably be to take part in any petitioning earlier than the nation’s highest places of work, they mentioned.

Sources spoke intimately on the technical points that may crop up if the states have been to borrow from the RBI which might be compensated later by the Centre. Besides the seven states – Punjab, Chattisgarh, Rajasthan, Jharkhand, West Bengal, Maharashtra and Puducherry – who figured within the webinar with Congress President Sonia Gandhi on the eve of Thursday’s GST Council assembly, Kerala and Odisha can also be inclined to affix fingers to strategy the Supreme Court, they added.

Besides understanding the fine-print of the Centre’s provide to make up for the shortfall, the states are additionally gearing as much as ship their replies on Sitharaman’s two choices.


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