Non-BJP states fear sovereign default on Centre's GST compensation

In what could widen the differences between the Centre and some states over the structure of the goods and services tax (GST), finance ministers of non-Bharatiya Janata Party (non-BJP) states on Wednesday feared that the Union government may be headed for a sovereign default on compensation to them.

States are given compensation by the Centre if they don’t clock 14 per cent growth in GST revenues in a year on the base of 2015-16.

Finance Minister (FM) Nirmala Sitharaman, on the other hand, reiterated the Centre’s commitment to paying the compensation to states.

However, finance ministers of non-BJP states such as