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GST council meeting: Unacceptable, say States reacting to Centre's options on meeting GST shortfall

States have united and come out strongly and rejected the Centre's options placed before the GST Council at the 41st meeting.

August 28, 2020 / 09:21 PM IST

The Centre on August 27 placed before the Goods and Services Tax Council two options for borrowing by states to meet the shortfall in GST revenues, pegged at Rs 2.3 lakh crore in the current fiscal.

Briefing reporters after the 41st GST Council meeting, Union Finance Minister Nirmala Sitharaman said the economy is facing an extraordinary 'Act of God' situation, which may result in economic contraction.

Also Read | GST Council meet: FM Sitharaman gives states 7 days to choose between two options to bridge compensation gap

Revenue Secretary Ajay Bhushan Pandey said that a special window can be provided to the states, in consultation with the Reserve Bank of India (RBI), at a reasonable interest rate for borrowing of Rs 97,000 crore.