No breakthrough in GST compensation deadlock; next Council meet on Oct 12
About two thirds of states opt for RBI-window of Rs 1.10 trillion, rest still want the Centre to borrow instead
 "Nirmala Sitharaman")
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"I was gently reminded (at the meeting) that I can't take anybody for granted. The fact is I don't take anybody for granted," FM Sitharaman
The Goods and Services Tax (GST) Council meeting on compensation for the states remained inconclusive on Monday, with 20-21 states opting for the Reserve Bank of India (RBI) window of Rs 1.10 trillion (earlier it was Rs 97,000 crore) and around 10 states insisting the Centre borrow and disburse the money.
The next meeting is now scheduled for October 12.
“The question was 20-21 states deciding to opt for the first option (the RBI window) and others wanting the Centre to borrow. Lots of discussion happened on that ... Bihar Deputy Chief Minister Sushil Modi suggested that 3-4-5 days be given to the states to discuss the issue. I gave eight days and the next meeting will happen on October 12,” Union Finance Minister Nirmala Sitharaman said after the meeting.
She said no state, irrespective of its choice, would be denied compensation.
In her answer to a question, she said she was not violating any provision of the compensation law. As to why she mentioned the number of states opting for one of the offers given by the Centre, she said, “20-21 states opted for it (RBI window) and we have put it on record. I can’t be told you should not mention it because it gives the feeling that the majority is deciding the issue. Even that will be unfair to the states which have opted.”
It is not that the Centre is sitting on the money and not giving it to the states, but the money has to be borrowed, she said.
Meanwhile, Kerala Finance Minister Thomas Isaac tweeted: “10 states demand(ed) that full compensation should be paid to the states during the current year as per clauses in the law and centre should borrow. Decision was postponed to the next meeting on 12th of October.”
The next meeting is now scheduled for October 12.
“The question was 20-21 states deciding to opt for the first option (the RBI window) and others wanting the Centre to borrow. Lots of discussion happened on that ... Bihar Deputy Chief Minister Sushil Modi suggested that 3-4-5 days be given to the states to discuss the issue. I gave eight days and the next meeting will happen on October 12,” Union Finance Minister Nirmala Sitharaman said after the meeting.
She said no state, irrespective of its choice, would be denied compensation.
In her answer to a question, she said she was not violating any provision of the compensation law. As to why she mentioned the number of states opting for one of the offers given by the Centre, she said, “20-21 states opted for it (RBI window) and we have put it on record. I can’t be told you should not mention it because it gives the feeling that the majority is deciding the issue. Even that will be unfair to the states which have opted.”
It is not that the Centre is sitting on the money and not giving it to the states, but the money has to be borrowed, she said.
Meanwhile, Kerala Finance Minister Thomas Isaac tweeted: “10 states demand(ed) that full compensation should be paid to the states during the current year as per clauses in the law and centre should borrow. Decision was postponed to the next meeting on 12th of October.”