Centre not obliged to pay for shortfall in GST compensation fund: AG

The Attorney General in his view said there is no obligation on the central government to pay the GST compensation shortfall

The Attorney General has opined that there is no obligation on the central government to pay the GST compensation shortfall to states and the GST Council has to decide on ways to make good any shortfall, sources said.

After the GST Council's meeting in March, the Centre had sought views from Attorney General K K Venugopal -- who is the chief legal officer of the government -- on the legality of market borrowing by the council to make good any shortfall in the compensation fund.

The AG in his view said there is no obligation on the central government to pay the