States up in arms over GST compensation

States up in arms over GST compensation

Opposition-ruled States have described as “unconstitutional” the Centre’s distinction in revenue shortfall as due to GST implementation and as that caused by Covid-19. The Centre insists the latter does not deserve to be compensated fully. These States are working on a coordinated strategy to force the Centre’s hand into fulfilling what they believe are solemn commitments.

Meanwhile, the GST Council, which has suggested two borrowing options for States to meet the shortfall, is expected to come up with a unified mechanism for all States and Union Territories, as implementing more than one system will create administrative troubles.

It is expected that each State will give its view and, based on majority views, a consensus will be arrived at.