States to pitch for dispute resolution system at GST Council meet on Aug 27

Punjab FM says not paying cess amounts to sovereign default

States will pitch for putting in place a dispute resolution mechanism in the absence of consensus over the compensation payout by the Centre at the meeting of the goods and services tax (GST) Council on Thursday. 

In what is expected to be a stormy meeting between the Centre and states, the latter will press for a vice-chairman post in the council, besides demanding full and timely compensation as “guaranteed by the Constitution of India”.

No compensation has been paid to states for the current fiscal, despite four months’ compensation falling due under the bi-monthly payment mechanism.

While the Centre will likely ask states