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Non-BJP states fear sovereign default on Centre's GST compensation

States are given compensation by the Centre if they don't clock 14 per cent growth in GST revenues in a year on the base of 2015-16.

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Dilasha Seth Indivjal Dhasmana New Delhi

2 min read Last Updated : Dec 19 2019 | 2:53 AM IST

In what could widen the differences between the Centre and some states over the structure of the goods and services tax (GST), finance ministers of non-Bharatiya Janata Party (non-BJP) states on Wednesday feared that the Union government may be headed for a sovereign default on compensation to them.

States are given compensation by the Centre if they don’t clock 14 per cent growth in GST revenues in a year on the base of 2015-16.

Finance Minister (FM) Nirmala Sitharaman, on the other hand, reiterated the Centre’s commitment to paying the compensation to states.

However, finance ministers of non-BJP states such as

Topics : Goods and Services Tax Nirmala Sitharaman

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