GST Council meeting Highlights: The Centre and states met last Monday but could not reach a consensus on the issue of borrowing to make up for compensation shortfall.
Finance Minister Nirmala Sitharaman
GST Council meeting Highlights: Finance Minister Nirmala Sitharaman today said that the GST Council meeting held today ended without a consensus between the Centre and a few states. FM Sitharaman added that the Centre has issued a borrowing calendar, and if it goes beyond that to borrow, the G-Sec deals which are used as a benchmark for every other borrowing will go up, which will increase borrowing costs for states and private sector too. She further said that GST Council has been gracious enough in unanimously agreeing to extend the cess beyond 5 years, to repay the principal and interest of the entire compensation. There is no dispute on this, the entire compensation has to be paid, it will be paid, FM Sitharaman underlined. The Centre and states met last Monday but could not reach a consensus on the issue of borrowing to make up for compensation shortfall. Further, it was decided to meet again on 12 October.