Centre gives states two options to meet GST compensation cess shortfall

States given two options to borrow: Rs 97,000 crore or Rs 2.35 trillion, burden of repayment on extension of cess period

The Centre on Thursday offered two options to states to compensate them amid inadequate cess collections under the goods and services tax (GST) regime. 

One was an offer of a special window to states, in consultation with the Reserve Bank of India (RBI), to the tune of Rs 95,000 crore at a reasonable interest rate. The other was for states to borrow Rs 2.35 trillion from the market, with the RBI as a facilitator.  

However, the burden of repayment will not be on states. The timeline for cess imposed on sin and luxury goods will be extended beyond June 30,