Kerala Finance Minister Thomas Isaac on October 12 said Finance Minister Nirmala Sitharaman's announcement that she is going to permit 21 states to borrow Rs 97,000 crore to meet the GST revenue shortfall is illegal.
His comments came after the Goods and Services Tax (GST) Council meeting held on October 12 also ended in an impasse over the issue of borrowing to meet the GST compensation shortfall.
He also said: "Option one involves deferment of compensation payment beyond 5 years for which a Council decision is necessary as per AG’s opinion. No such decision has been made in the Council."
The Kerala FM then tweeted:
It is unfortunate that Union FM does not propose a decision in the Council or even make a statement what she is going to do but choose to make the announcement in the press conference. Why does Centre refuse to take a decision in Council? Total disregard for democratic norms.