Centre softens stand on GST dues to states
Tribune News Services
New Delhi, September 8
On a day that saw several Opposition-ruled states remaining adamant on being compensated for the entire GST shortfall, the Centre said it will be made good.
The assurance about “full compensation” would imply that the portion ascribed to “hand of God” will also be transferred to the states.
The Centre’s assurance came after at least nine states rejected the two options offered by Union Finance Minister Nirmala Sitharaman and sought an early meeting of the GST Council. Those states that were the first to accept one of the two options were criticised by their political rivals for allegedly allowing themselves to be shortchanged by the Centre.
Punjab, Rajasthan, Chhattisgarh, Jharkhand, Puducherry Kerala, West Bengal, Telangana and Delhi have opposed both the options while Karnataka, Assam and Bihar were among the first to choose the first of the two options offered by Sitharaman to compensate states for Rs 2.35-lakh crore in GST dues.
Under the first, the GST related shortfall was Rs 97,000 crore while the rest was lost due to “hand of God” (Covid-related disruptions). States were given leeway to borrow more from the market if they accepted this option. Under the second option, the states would have got the entire amount but further borrowing was conditional such as eliminating free rural electricity.
