Nirmala Sitharaman chairs GST council meeting; states’ compensation cess at centre stage

On the back of low revenue collection and disruptions caused by the coronavirus pandemic, the states are heading towards a GST revenue shortfall of Rs 2.35 lakh crore.

GST Council Meeting LIVE: Finance Minister Nirmala Sitharaman will today address media on the outcomes of the 42nd GST Council meeting at 5:45 pm. FM Sitharaman chaired the GST Council meeting via video conferencing. This is the first GST Council meeting after the Centre provided two borrowing options to solve the issue of compensation dues for states. So far, nearly 21 states have opted to borrow Rs 97,000 crore to offset the GST shortfall. On the back of low revenue collection and disruptions caused by the coronavirus pandemic, the states are heading towards a GST revenue shortfall of Rs 2.35 lakh crore. However, out of this, the Centre calculated that a shortfall of about Rs 97,000 crore is on account of GST implementation, and the rest Rs 1.38 lakh crore is due to the impact of COVID-19 on states’ revenues.