The 43rd meeting of the GST Council is scheduled for tomorrow, i.e. on October 12, 2020 amid differences in government. States and centers are facing economic difficulties due to reduction in GST returns. At the meeting, the GST Council will discuss a number of important issues. States were given two options to compensate for the lack of revenue, in the absence of GST compensation. Non-BJP ruled states have refused to accept the option of taking one of these loans. In such a scenario, a meeting between the Center and the state governments tomorrow is likely to be a hot topic.
Amid ongoing differences in the government, the 43rd meeting of the GST Council is scheduled to be held tomorrow, October 12. If the decision is not in favor of the states, the Supreme Court may go ahead with the case. Opposing the option of repaying the revenue deficit by borrowing, the states say the central government should repay the entire debt to the states. Kerala Finance Minister Thomas Isaac said 10 states are seeking full payment as per the conditions on behalf of the central government in the current year. For this, the center should take a loan. He also warned that the Supreme Court would be knocked on the door if the Center refused to set up a dispute resolution mechanism and tried to pass the option of lending through voting.
The finance minister on October 5 announced Rs 20,000 crore
According to the central government, GST collection has declined by Rs 2.35 lakh crore. Of this, Rs 97,000 crore is due on GST, while the rest is due to Corona virus. Finance Minister Nirmala Sitharaman announced on October 5 that Rs 20,000 crore would be given to the states by late night. At the council meeting held in August 2020, the Center had suggested two options for reimbursing GST. One, the states will be provided a special window under which they can take loans from the Reserve Bank of India (RBI). Of this, states can get loans of Rs 97,000 crore at low interest rates. This amount can be deposited from cess collection till 2022.
10 non-BJP ruled states rejected the option of borrowing
As another option, the Center said, a loan of Rs 2.35 lakh crore could be taken under a special window. 21 states of the country are supporting this issue. By mid-September, he had the opportunity to select and take a loan of Rs 97,000 crore. However, 10 non-BJP ruled states refused to accept this option. He says the Center should repay the GST by taking a loan from him. So far, Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Karnataka, Madhya Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Puducherry, Sikkim, Tripura and Uttarakhand. Has chosen the loan option.