GST row: Govt proposes to revise Option 1, Oppn states may table 3rd option

Centre is likely to propose extending the compensation cess period by another two years beyond June 2022

Ahead of the crucial Goods and Services Tax (GST) Council meeting on Monday, the Centre has proposed to increase the interest-free borrowing limit for states to around Rs 1.1 trillion through the special window of the Reserve Bank of India to make up for the compensation shortfall, up from Rs 97,000 crore it proposed earlier. 

On the request of a few states, it has lowered the GST growth forecast to 7 per cent, from 10 per cent estimated earlier.

However, unimpressed, the key Opposition-ruled states are likely to reject both borrowing options proposed by the Centre to meet the