New Delhi: The GST Council did not agree with the proposal put forward by the Central Government to pay compensation arrears to the States. At the same time, Rs 20,000 crore has been collected as GST compensation cess so far this year. It was decided to pay on Monday itself.
Finance Minister Nirmala Sitharaman said the amount would be distributed to the states soon. The GST Council has also decided to extend the compensation cess beyond June 2022 in case of declining revenue.
The announcement was made after the 42nd Goods and Services Tax (GST) Council meeting today. At the same time, 21 states, including Kerala, supported the central government’s proposal to borrow Rs 1,10,000 crore through the Reserve Bank to offset the loss of revenue. Meanwhile, there was a demand for a vote. The final decision on the crisis will be taken at a meeting on the 12th of this month.
