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Twenty-One States Choose Borrowing Proposal To Meet GST Shortfall
By: Tupaki Desk | 21 Sep 2020 1:20 PM GMT
The central government couldn't pay GST dues to states as it did not earn much this year due to months of lockdown necessitated by the COVID-19 crisis.
In order to survive the situations, at least 21 states including Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Madhya Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Puducherry, Sikkim, Tripura, Uttarakhand and Uttar Pradesh have opted for borrowing Rs 97,000 crore.
The goods and services tax council proposed the borrowing option to meet the shortfall in compensation from the centre amid the coronavirus pandemic.
If the other states do not submit their options before the due GST Council meeting on October 5, then they will have to wait till June 2022 to get their compensation dues, but on the condition that the GST Council extends the cess collection period beyond 2022.
In order to survive the situations, at least 21 states including Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Madhya Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Puducherry, Sikkim, Tripura, Uttarakhand and Uttar Pradesh have opted for borrowing Rs 97,000 crore.
The goods and services tax council proposed the borrowing option to meet the shortfall in compensation from the centre amid the coronavirus pandemic.
If the other states do not submit their options before the due GST Council meeting on October 5, then they will have to wait till June 2022 to get their compensation dues, but on the condition that the GST Council extends the cess collection period beyond 2022.
