Can GST Council borrow from market as compensation cess collections fall?

Since there is no precedent for a constitutional body to borrow, an alternative which has been discussed is for the Centre to borrow with the specific intention of making up the compensation shortfall

Earlier, there was an impression that states would be compensated for the losses they bore in full, for a period of five years from the date of GST roll out.  The losses would be incurred if states' revenues didn't grow by 14 per cent under the GST regime, on the base year of 2015-16.

However, that was not the legal position. Later, it was made clear that the states would get their dues on this front only from Compensation Cess collections. 

A finance ministry official explains, "The law is very clear. It says that for the purpose of paying compensation,