The Centre is of the view that it can only meet the compensation requirement from GST cess receipts, while states said the Council must borrow from market to meet the gap. Badal said his government will seek full and timely GST compensation from the Centre at Thursday’s GST Council meeting, including for the national lockdown period when the revenues of states were hit badly. The Centre is expected to table the attorney general’s views at the meeting which was called exclusively to discuss GST compensation. The friction between the Centre and Congress-ruled states over GST compensation could spill over to the monsoon session of Parliament, which will begin in mid-September. “Our demand is that the Centre should pay the full GST compensation for five years and pay on time because any delay hurts the states," he added.

Source: Mint August 26, 2020 00:11 UTC