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GST compensation delay: States considering legal action against Centre

Central govt official says will release funds before end of this month

“We will take legal recourse if Centre does not release compensation. If cess collection is not adequate, let the Centre borrow and extend the cess period by another 2-3 years," says Thomas Isaac, Kerala FM
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“We will take legal recourse if Centre does not release compensation. If cess collection is not adequate, let the Centre borrow and extend the cess period by another 2-3 years," says Thomas Isaac, Kerala FM

Dilasha SethArup Roychoudhury New Delhi
Some states are considering legal recourse against the Centre for delay in releasing the bi-monthly goods and services tax (GST) compensation, according to Kerala finance minister Thomas Isaac.

Rajasthan, Delhi, West Bengal, Punjab and Kerala issued a joint statement on Wednesday, after the empowered committee meeting of state finance ministers, urging Union Finance Minister Nirmala Sitharaman to release the compensation ‘without any further delay.’

The states were supposed to receive the compensation for GST revenue shortfall for August and September, sometime in October. 

“No explanation whatsoever has been furnished for this delay of nearly one month,” the joint statement said. States are facing

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