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GST Council to have a one-point agenda meeting on compensation issue in July

"We'll discuss if market borrowing is needed to sort the issue and if yes, how should it be done," Finance Minister Nirmala Sitharaman said after the GST Council meeting.

June 12, 2020 / 11:22 PM IST

The government is planning to have a single-point Goods and Services Tax (GST) Council meeting in July on compensation cess, which has been a bone of contention between the states and the Centre.

"In July, we'll have a one-point agenda meeting on GST compensation cess. We'll discuss if market borrowing is needed to sort the issue and if yes, how should it be done," Finance Minister Nirmala Sitharaman said after the GST Council meeting.

In March, Sitharaman had said the GST Council would examine the legal implications of borrowing from the market to meet the shortfall in funds to compensate states for their GST revenue loss and ensure that states’ guaranteed revenue growth of 14 percent year-on-year is protected.

GST collections for March dipped sharply, as the central government's GST collection dropped 87 percent year-on-year. The due date for payment of tax is June-end.