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GST compensation: States refuse to relent, demand full borrowing by Centre

A day after the Centre agreed to borrow Rs 1.1 trn and lend to states in lieu of the promised compensation, dissenting states including Chhattisgarh, Kerala made it clear they will not relent

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Goods and Services Tax | GST compensation

Dilasha Seth  |  New Delhi 

GST
Official sources pointed out that Reserve Bank of India had urged the Centre against borrowing by states as it would have been impossible to provide loans at a uniform rate to all states.

Controversy around the (GST) compensation payment to states has refused to die down. A day after the Centre changed its stance and agreed to borrow Rs 1.1 trillion and lend to states in lieu of the promised compensation payment, dissenting states including Chhattisgarh and Kerala have made it clear they are in no mood to relent. They want the Centre to borrow the entire Rs 2.35 trillion this fiscal citing bleak fiscal position.

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First Published: Fri, October 16 2020. 21:48 IST
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