Willing to compromise on GST compensation: Kerala FM Thomas Isaac

FM Isaac said the Centre must do away with the bifurcation of revenue shortfall arising due to Covid-19 and GST implementation.

Hit hard by dwindling revenues due to the Covid-19 pandemic, Kerala has indicated its willingness to ‘compromise’ amid intensifying Centre and opposition states’ tussle over goods and services tax (GST) compensation. 

While 10 key Opposition-ruled states pressed for borrowing by the Centre to make up for the compensation shortfall in the council meeting on Monday – called the third option – Kerala finance minister TM Thomas Isaac told Business Standard he was open to partial borrowing by states. 

He added that he may even agree to deferring a part of the compensation.

Around 12 opposition-ruled states and union territories (UTs), including Andhra Pradesh and