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Tamil Nadu CM urges Centre to revisit options on GST compensation

He asked the government to ensure that the states get their full dues of the compensation in the current year itself

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CM Palaniswami has written to PM Modi over GST compensation.

4 min read Last Updated : Aug 31 2020 | 3:13 PM IST

Tamil Nadu Chief Minister Edapaddi K Palaniswami today wrote to Prime Minister Modi urging him agree to a mechanism in which the Centre would raise the required funds as a loan and lend it to the GST Compensation Fund against future cess receipts.

Palaniswami, who also leads BJP's ally AIADMK, said he was “concerned” about the options proposed by the Union Finance Minister on GST compensation to the States.

“Our stance has consistently been that the Government of India has a moral and legal obligation to compensate the shortfall in GST collections. The argument that States borrowing for what is essentially a Government

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