Centre might raise loan to pay shortfall of GST compensation amount

The Union government is checking out raising a loan to pay the shortage of the Item and Provider Tax ( GST) settlement total up to States as the latter have actually had to ramp up investing to fight the outbreak of COVID-19

According to senior authorities in the Finance Ministry, the concept has actually been distributed and considering that the GST Act restricts withdrawal of funds from the Consolidated Fund, raising loans is being seen as an escape. “We will either require to call a video conference of the GST Council or ask States in writing whether they are on board on this,” said a senior government source.

According to Krishna Byre Gowda, previous Minister for Agriculture in the Karnataka government and part of the GST Council when the Act was drafte