43rd GST Council Meeting Ends Without Any Conclusion On Monday

Finance minister Nirmala Sitharaman announced on Monday that the Centre and states ended the GST (Goods and Services Tax) Council meeting without conclusion. This comes after a long-drawn feud between state governments and the Centre that remain at loggerheads regarding GST compensation. The 43rd GST Council meeting comes hours after Finance Minister Nirmala Sitharaman on Monday announced a Rs 73,000 crore package, including advance payment of a part of wages to central government employees and cash in lieu of LTC, to stimulate consumer demand and investment in the economy damaged by the coronavirus pandemic. As much as Rs 11,575 crore would be paid as LTC allowance and advance to central government and PSU employees on the condition that they spend on non-essential goods before March 31, she said. The government, in its proposal, has asked the states to borrow to meet the GST revenue shortfall. The states have, however, demanded setting up of a dispute settlement mechanism. While some opposition ruled states are demanding that a Group of Ministers be set up to arrive at a decision on the mechanism for funding compensation shortfall, BJP ruled states, which have already opted for the borrowing option given by the Centre, are of the view that they should be given a go-ahead so that they can get money quickly.

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