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BJP-ruled States seek faster GST solution, want expeditious rollout of borrowing window

BJP-ruled states are likely to press for expeditious rollout of the ₹1.1 lakh crore special borrowing mechanism offered by the Centre to bridge the deficit in the goods and services tax (GST) compensation cess fund. They don’t support setting up a group of ministers (GoM) to resolve the issue, as has been suggested by some opposition-ruled states, citing their urgent need for funds. This suggests a hardening of views that portends a stormy GST Council meeting on October 12. “All these statements are politically motivated… We want immediate resolution,” Bihar deputy chief minister Sushil Kumar Modi told ET.

“The Centre should facilitate the borrowing for states that have already exercised their choice on options given.” He said states want money for their expenditure and cannot wait any longer. Wedge Along Party Lines Opposition-ruled states want the Centre to borrow the money and compensate them for revenue lost due to the introduction of GST in 2017. Some are open to a third option in which the Centre undertakes part of the borrowing.

News source ~ Economic Times