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Kerala led 9 different States in rejecting the 2 choices for Goods and Services Tax (GST) compensation mooted by the Union authorities on the forty second GST Council on Monday.
Finance Minister T.M. Thomas Isaac, who represented the State, stated Chhattisgarh, Maharashtra, Delhi, Punjab, Rajasthan, Telangana, Puducherry, Jharkhand, and West Bengal, supported Kerala’s stance and was of the view that the Centre ought to take loan for the fee of the GST compensation. Dr. Isaac stated 20 States favoured the primary possibility mooted by the Centre on the final GST council. The first possibility is to present a particular borrowing window to States in session with the Reserve Bank of India to present ₹97,000 crore at an affordable rate of interest. The different possibility is to meet your complete GST compensation hole of ₹2.35 lakh crore this 12 months itself after consulting the Central Bank.
In Monday’s deliberations, 10 States rejected the proposals mooted by the Centre to lengthen the compensation cess past 2022.
The Finance Minister stated the Centre and the States that supported the choices of the Centre weren’t prepared for discussions on who would borrow in what quantity, what quantity could be borrowed, and what quantity could be deferred. Instead, as within the final GST Council, after extending the assembly to 6.30 p.m., it was introduced that the States that opposed the Centre’s ideas ought to intimate their stance as soon as extra, Dr. Isaac stated.
‘Decide through vote’
“Kerala opposed it and said it was not the GST Council’s decision. The Centre is a member of the GST Council and hence decisions should be taken through voting. The legal provisions for Dispute Resolution Mechanism should be activated. Nine States supported us. Without going for a vote after eight hours of deliberations, it was announced that the GST Council will take a call on the compensation at the next meeting on October 12,” he stated.
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