New Delhi: The Center and the state are at loggerheads over GST compensation, and the GST council meeting to be held on the 16th of this month has been postponed. The meeting is scheduled to take place on October 5. At the last meeting, the central government expressed its inability to pay compensation to the states. The central government has given two options to the states to provide compensation through loans. But the government has asked states to lend to themselves. Non-BJP-ruled states are opposed to the Centre’s proposal, while other states are not clear on the status quo. The next meeting of the GST council is likely to decide on reducing the tax rate on certain items and increasing the amount of cess to raise funds for compensation.
As many states have rejected the Centre’s proposal, Prime Minister Narendra Modi’s government will have to face tough questions at the next GST council meeting. Because the states have taken the issue seriously. Gradually, the central government is accused of seizing power. Some states have accused the government of threatening the country’s federal system. In that sense, it is possible to persuade the states to come up with a solution. ” “It simply came to our notice then. Earlier, on August 28, the 71st meeting of the GS8 Council was held. At that meeting, the Center made two proposals to the states. The Center estimates that due to the effects of the Karona epidemic, the GST collection will be Rs 2.35 lakh crore less than the target this year. Of this, Rs 4,000 crore is GST compensation. States can borrow Rs 4,000 crore or Rs 2.35 lakh crore if they want. That is why a special provision will be made in the Reserve Bank. If states borrow Rs 6,000 crore, they will not be included in their accounts.
