GST Council meet on compensation mechanism inconclusive for second time

Kerala Finance Minister Thomas Isaac said, Sitharaman's announcement that she would permit 21 states to borrow in line with Option 1 was illegal

The GST Council meeting remained inconclusive for the second time on Monday after the Centre offered two options to states for compensating them for the loss of revenue under the indirect tax regime as there was no consensus on the issue. Finance Minister Nirmala Sitharaman appealed to the Council and the states to quickly decide on the states which want to borrow.
 

"I appealed that we need to quickly give answers to states that want to borrow," the finance minister, who chaired the meeting, told reporters.
 

Majority of states -- 21 of 30 -- had opted for the RBI window