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Centre, state finmin officials thrash out GST compensation gaps

The states were informed that if they take the option of borrowing Rs 97,000 crore under a special window, they will still get Rs 2.35 trillion minus Rs 97,000 crore from the compensation cess

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Two days after the August 27 GST Council meeting, the finance ministry, in a letter to states, shared details of the two options, which states will examine over seven days

Arup Roychoudhury New Delhi

3 min read Last Updated : Sep 02 2020 | 1:17 AM IST

Senior central government officials held a meeting on Tuesday with finance secretaries of states to clarify the two borrowing options given to them to make up for the goods and services tax (GST) compensation shortfall, Business Standard has learnt.

The states were informed that if they take the option of borrowing Rs 97,000 crore under a special window, they will still get Rs 2.35 trillion minus Rs 97,000 crore from the compensation cess. The states were also told that in case of the second option of borrowing Rs 2.35 trillion through state development loans, the states will be given an unconditional

Topics : Goods and Services Tax Nirmala Sitharaman GST compensation State govt market borrowings

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