GST uncertainty continues

Confusion and delays could increase Centre-state friction

The Goods and Services Tax (GST) Council, chaired by Union Finance Minister Nirmala Sitharaman, met on Thursday with a single-point agenda to resolve the issue of compensation to the states owing to a shortfall in revenue collection. The states have not been compensated so far in the current financial year, because the Centre has not been able to bridge the revenue gap owing to the inadequate collection of the compensation cess. Overall GST collection has declined significantly in the current year, largely because of the Covid-induced lockdown. The state governments were assured compensation for five years in case GST collection