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Key takeaways from the GST Council meet on October 12

Finance Minister Nirmala Sitharaman said that the GST Council meeting held on October 12 ended without a consensus between the Centre and a few states.

October 13, 2020 / 10:37 AM IST

The states' representatives, including those governed by the Opposition parties, faced each other at the Goods and Services Tax (GST) Council meet chaired by Finance Minister Nirmala Sitharaman via video conferencing on October 12 to discuss the GST compensation for state governments for FY21.

The Centre had provided the states with two borrowing options to solve the issue of compensation dues. These are: either borrowing the compensation amount arising from implementation of GST (Rs 97,000 crore) or the entire shortfall due to the states, which amounts to Rs 2.35 lakh crore.

The Centre said as many as 21 states were in favour of borrowing Rs 97,000 crore to meet the GST revenue hit to state coffers. Most of these states are ruled by the Bharatiya Janata Party (BJP) or parties that support it.

Here are the key takeaways from the GST Council meet: