States To Get Rs 20,000 Cr Compensation Cess On Monday Night

States to get Rs 20,000 Cr Compensation Cess on Monday night

Finance Minister Nirmala Sitharaman announced the news on Monday after the 42nd GST Council meeting.

 States To Get Rs 20,000 Cr Compensation Cess On Monday Night-TeluguStop.com

Central government to disburse GST compensation cess of Rs 20,000 Cr to states on Monday night.

After the 42nd GST Council meeting, Finance Minister Nirmala Sitharaman affirmed the news and said the discussion with the states is still on.Further, she said, Rs 24,000 crore of IGST that was to be released to the states, which had received less earlier, will be disbursed within a week.

The states were given two options to either borrow Rs 97,000 crores from RBI or Rs 2.35 lakh crore from the market.The Finance Minister said that as many as 21 states have chosen for the first option of borrowing Rs 97,000 crore.The GST Act states that only 20 states are required to say ‘yes’ to pass a resolution.

However, reports state that all of the states are BJP-ruled or BJP-aligned states and the opposition states like Kerala, West Bengal, and Punjab are yet to accept either of the borrowing options.They argue that it is the constitutional liability of the Central government to compensate states, and therefore, seeking a third compensation option.

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