The GST Council meeting on Monday may turn into a stormy affair, with non-BJP ruled States still being in disagreement with the Centre on the compensation issue.
While as many as 21 States , mostly ruled by BJP or parties which have supported it on issues, had till mid-September opted to borrow ₹97,000 crore to meet the GST revenue shortfall in the current fiscal, opposition-led states like West Bengal, Punjab and Kerala have not yet accepted the borrowing option given by the Centre.
Sources said in the 42nd meeting of the Council, which will be held on October 5, opposition-ruled States would object to the Centre’s borrowing options and demand alternative mechanism for funding GST compensation deficit. They feel that the constitutional liability of compensating States lies with the Union government.
In the current fiscal, the States are staring at a staggering ₹2.35 lakh crore Goods and Services Tax (GST)