GST deadlock remains, compensation for tax collected to be released tonight

GST Council meeting, conducted via videoconference, was held to consider the two borrowing options offered to states in August to meet their shortfall in GST collections

The Goods and Services Tax (GST) Council will meet again October 12 after talks on Monday failed to resolve how states be compensated for their loss of revenue. As the deadlock between states and the centre continued, Finance Minister Nirmala Sitharaman said compensation for tax collected will be released tonight.

"Ten states demanded that full compensation should be paid to the states during the current year as per clauses in the law and centre should borrow. Decision was postponed to the next meeting on 12th of October," said Kerala’s finance minister Thomas Isaac after the meeting.

"Compensation cess collected this