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LATEST NEWS UPDATES | Six States forge unity on GST compensation

Six States forge unity on GST compensation

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published Published on Aug 31, 2020   modified Modified on Sep 1, 2020

-The Hindu

‘Centre should borrow loan and pay dues instead of asking States to do so citing fall in collections’

Hyderabad: Six State governments, including Telangana, on Monday bounced back the Centre’s offer made to them to borrow loan and meet their GST compensation in view of shortfall in collections due to the COVID-19 pandemic.

At a video conference of Finance Ministers, Telangana apart, West Bengal, Kerala, Chhattisgarh, Delhi and Punjab governments, arrived at a consensus that the Centre should borrow loan instead of asking the States to do so and pay them the compensation. The governments also rejected the two options put forward at the recent GST Council meeting, asking them to borrow the 97,000-crore shortfall arising out of GST implementation or 2.35 lakh crore which is their compensation requirement in the current year due to faltering of collections.

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The Hindu, 31 August, 2020, https://www.thehindu.com/news/national/telangana/six-states-forge-unity-on-gst-compensation/article32490870.ece?homepage=true


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