The GST Council is expected to meet on 5 October to discuss ways of meeting states’ GST revenue gap, especially the two borrowing options offered to them. Kerala finance minister Thomas Isaac and West Bengal finance minister Amit Mitra have sought suggestions from academicians and experts which could form the basis for proposals before the Council. “GST compensation is a right that states will never give up," Isaac said at the meeting, adding that the central government should arrange for payment of compensation to states rather than expecting them to borrow. "How GST compensation has to be calculated is given in the law and there is no distinction between Covid and non-Covid revenue loss. "What is the point in attending a future GST Council meeting if it is a foregone conclusion that every decision is taken by majoritarian view…We see no point in continuing in the Council," he said.

Source: Mint September 28, 2020 10:07 UTC