The deadlock between the central and state governments over the Goods and Service Tax (GST) continues. Union Finance Minister Nirmala Sitharaman has said that the compensation amount / compensation for the tax collected will be released tonight. The Finance Minister made this announcement during the video conferencing of GSG Council. The Finance Minister said that we are not denying the compensation amount to the states. No one had imagined the status of Kovid-19. It is not that the central government is seizing the fund. Funds have to be borrowed. Have I refused compensation to any state?
He said that Bihar Finance Minister Sushil Kumar Modi has suggested that we should meet again and discuss the borrowing options. We will meet again on October 12 and continue to discuss this issue. On this occasion, Minister of State for Finance Anurag Thakur and Finance Minister of States and Union Territories, while officials of the Central and State Governments were also present. There is a possibility of shortfall or fall.
Significantly, in the last GST Council meeting, there was a fierce debate on the question of giving GST compensation to the states. In Monday’s meeting too, pressure was put on the central government to quickly repay the outstanding amount on behalf of the representatives of the states ruled by the opposition parties. Among the states that accepted the government’s borrowing proposal – Andhra Pradesh, Arunachal Pradesh, Assam , Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Karnataka, Madhya Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Sikkim, Tripura, Uttarakhand and Uttar Pradesh. Among them is the Congress-ruled Union Territory of Puducherry.
GST Council meeting, collection reduced by half