Non-BJP ruling states have refused to accept the option of loans. Under such circumstances, there is a possibility of a heated debate at a meeting between the central and state governments tomorrow.
42nd GST Council Meeting : The 43rd GST Council meeting between the states and the central government on GST compensation will be held tomorrow (October 12, 2020). States are facing financial difficulties due to the reduction in GST compensation. However, the GST Council will discuss a number of important issues at this meeting. When states do not have GST compensation, they are already given two options to compensate for the revenue shortfall. Non-BJP ruling states have refused to accept the option of taking one of these loans. Under such circumstances, there is a possibility of a heated debate at a meeting between the central and state governments tomorrow.
If the decision is not in favor of the states, the case can go to the Supreme Court …
States that oppose the option of covering the revenue deficit by borrowing are being urged to take full debt from the central government and pay compensation to the states. Kerala Finance Minister Thomas Isaac said that in the current year, 10 states are conditionally demanding full payment on behalf of the central government. For this the center has to take a loan. The Center has refused to set up a dispute resolution mechanism and warned that it would approach the Supreme Court if it tries to approve the option of borrowing by voting.
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Finance Minister announces Rs 20,000 crore on October 5
The central government has said there is a shortfall of Rs 2.35 lakh crore in GST collection. Of this, Rs 97,000 crore was due for GST, while the rest was due to corona lockdown. However, last week, Finance Minister Nirmala Sitharaman hastily announced on October 5 that Rs 20,000 crore would be given to the states. At a council meeting in August 2020, the Center put forward two options for paying compensation for GST. One is to provide loans to the states through a special window. Under this, the states can take loans from the Reserve Bank of India (RBI). Of this, states can avail low interest loans of Rs 97,000 crore. This amount can be credited from cess collection till 2022.
10 non-BJP ruling states refuse to take loans …
Under the special window Rs. The Center has said it can borrow Rs 2.35 lakh crore as an alternative to another. 21 states in the country are supporting this issue. By mid-September, it was possible to borrow Rs 97,000 crore by opting for the option. However, 10 non-BJP ruling states refused to accept the option. The Center is going to take loans and pay compensation to them for GST compensation. 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 and Sikkim have opted for the loan option.
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