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The issue of lending is outside the jurisdiction of the GST Council, Central and government will need to take initiative

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The issue of lending is outside the jurisdiction of the GST Council, Central and government will need to take initiative

Jurisdiction of the GST Council

The issue of lending is outside the jurisdiction of the GST Council, Central and government will need to take initiative

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The dispute between the central government and therefore the states over the GST compensation isn’t being named. Sources have told Hindustan that albeit the states are talking about borrowing this money from the middle within the meeting of the GST Council, actually the matter isn’t within the jurisdiction of the Council. This issue is taking a rollover for such a long period. Both state and central governments are keeping on a long discussion of this controversy. But the solution has not yet been released.

According to the officer related to the case, the GST Council has the proper only to satisfy the deficit of compensation by cessing the products. In the case of borrowing, the state and central government need to take initiative on their own. The central government has also decided to increase the amount of compensation cess. In such a situation, the ball is now within the court states that they’re able to either borrow through the central government’s RBI and repay that quantity through the compensation cess collected after 2022 or find a replacement way. A complete discussion is going in such a way that the government is going to think related to the distribution amount of GST loan money in the different states of India.

This is often the rationale why the central government suggested two borrowing options on its behalf, states got the choice of borrowing from the Federal Reserve Bank. Out of this, 21 states have also agreed to borrow 1.10 lakh crore rupees because of the first option. Insight of the opposition of other states within the council meeting persisted Monday, the ultimate decision on this has been postponed till Columbus Day.

 

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Anurag Srivastva
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