The GST Council meeting on October 12 again failed to reach a settlement on borrowing options for the shortfall in the compensation cess. This was the third meeting in a row that discussed compensation shortfall without arriving at a decision. Finance Minister Nirmala Sitharaman, however, said the Centre is ready to help the states which have decided to borrow to bridge the cess shortfall.
In August, the Centre had proposed two options to states, to either borrow Rs 97,000 crore (on account of GST implementation) through a special window facilitated by the RBI or to borrow the complete shortfall of Rs 2.35 lakh crore (including Rs 1.38 lakh crore due to COVID) from the market.
The amounts under the two options have since been revised to Rs 1.10 lakh crore and Rs 1.8 lakh crore, respectively.
In this edition of Big Story, let's find out what all happened in the GST Council Meet on October 12
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
