New Delhi [India], October 12 (ANI): A meeting of Goods and Services Tax (GST) council chaired by Finance Minister Nirmala Sitharaman is underway via video conferencing.
"Finance Minister Nirmala Sitharaman chairing the GST Council meeting via video conferencing in New Delhi today. MOS Anurag Thakur, Finance Ministers of States & UTs and Senior officers from Union Government & States are also present in the meeting," Finance Ministry tweeted.
A press briefing by Sitharaman which was scheduled after the meeting is delayed as the meeting is still in progress.
"As the GST Council meeting is still in progress, the press briefing is delayed. The briefing will commence after the GST Council meeting gets over. Inconvenience is regretted," Ministry of Finance tweeted.
On October 5, the GST Council at its 42nd meeting had decided to extend the levy of compensation cess beyond the transition period of five years for such period as may be required to meet the revenue gap.
The Centre, on the request of States, also decided to increase the shortfall amount to Rs 1.10 lakh crores from Rs 97,000 crores under the borrowing option.
Sitharaman said 21 States have chosen borrowing option 1 for compensation of revenue shortfall due to GST implementation.
She clarified that the Centre is not denying compensation to any State but those which have not chosen any borrowing option have to borrow from the market.
Several Congress and other Opposition ruled states have objected to the two borrowing options proposed by the Union Government at the GST Council Meeting on October 5.
They have said that the Centre has an obligation to pay the GST compensation to the States. (ANI)