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Entire GST shortfall will be compensated, says govt ahead of Sept 10 meet

The finance ministry ruled out borrowing by the Centre as suggested by some states

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The ministry estimated that there would be a compensation requirement of Rs 3 trillion for states and the compensation cess would be around Rs 65,000 crore for the current financial year, leaving a gap of Rs 2.35 trillion

Indivjal Dhasmana New Delhi

7 min read Last Updated : Sep 08 2020 | 3:47 AM IST

The GST Council will meet on Thursday to take a call on the borrowing options given by the Centre to meet the compensation gap of states. Ahead of the special meeting, finance ministry sources reiterated that the shortfall in compensation to states - whether on account of GST implementation or the coronavirus (Covid-19 pandemic) - would be compensated.

The ministry also ruled out borrowing by the Centre as suggested by some states with sources saying that under the GST law, the compensation cess is a tax owned by the states and under Article 292 of the Constitution. The Centre can

Topics : Goods and Services Tax GST Council State govt market borrowings

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