New Delhi: The GST Council is scheduled to meet on Monday, October 5. The meeting is likely to be tumultuous, as non-BJP-ruled states still disagree with the Centre’s proposal on the issue of compensation.
A total of 21 states, including the BJP-ruled states, have backed the Center on the issue of GST compensation. These states had until mid-September to make up for the shortfall in GST revenue in the current financial year. Choose the option of borrowing Rs 97,000 crore. However, states ruled by opposition parties like West Bengal, Punjab and Kerala have not yet opted for the loan offered by the central government.
Many states disagreed with the Centre’s proposal
According to PTI, at the 42nd meeting of the GST Council to be held on October 5, states ruled by opposition parties may oppose the Centre’s option. These states may seek alternative arrangements for GST compensation. These states believe that it is the constitutional responsibility of the central government to offset the decline in the revenue of the states.
Notably, the revenue to the states from GST could be reduced by Rs 2.35 lakh crore in the current financial year. According to the central government’s calculations, the implementation of GST is responsible for a reduction of only Rs 97,000 crore, while the remaining Rs 1.38 lakh crore is due to Kovid-19.
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