He said that as per provisions, GST compensation should be paid to states every two months and the Chhattisgarh government has not yet received Rs 2,828 crores amount even after four months of fiscal year 2020-21, therefore, the amount should be sanctioned to the state without any further delay.
The two borrowing options to meet the GST compensation requirement for 2020-21 consequent to the discussions in the 41st meeting of the GST Council held on August 27 has been communicated to states which could, in turn, communicate their preference within seven working days, the Finance Ministry said on Saturday.
A meeting of State Finance Secretaries with the Union Finance Secretary and Secretary (Expenditure) is scheduled to be held on September 1, 2020, for clarifying issues, if any.
The first option provides a special window to states in consultation with the Reserve Bank of India (RBI) to provide Rs 97,000 crore at a reasonable rate of interest. This money can then be repaid after five years from the collection of cess.
The second option is that the entire GST compensation gap of Rs 2.35 lakh of this year can be met by states in consultation with the RBI.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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