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New Delhi:
Senior Congress chief P Chidambaram urged states to reject choices given to them by the Centre over the GST compensation situation and demand cash in a single voice.
His remarks come a day after the federal government requested states to borrow extra to make up for income losses resulting from pending GST dues. “States must reject both options and demand, in one voice, that the Centre must find the resources and provide the money to the States,” P Chidambaram tweeted.
“The two options given by the Modi government to the States to bridge the GST Compensation gap is a gross violation of the law and an abdication of the responsibility of the central government,” he mentioned.
He claimed that in both choice, the central authorities is passing the buck of economic burden to the states.
Under the regulation, the duty to compensate the states falls solely on the central authorities, the senior Congress chief famous.
“The latest assault on the States is part of an elaborate design of the Modi government to financially cripple the States and reduce them to beg for money from the Centre,” P Chidambaram claimed.
Amid a refrain by non-NDA dominated states for compensation of GST income shortfall, the Centre on Thursday throughout the GST Council assembly informed states that the estimated deficit of Rs 2.35 lakh crore this fiscal yr could be made good by borrowing from the market in opposition to future tax revenues.
At the tip of a five-hour lengthy assembly of the GST Council, Union Finance Minister Nirmala Sitharaman mentioned there was no proposal to boost tax charges to make up for the shortfall that has been compounded by the COVID-19 pandemic hitting financial exercise.
Citing a authorized opinion from the legal professional common, she dominated out the Centre making good the shortfall from both its coffers or by borrowing on its stability sheet.
The Centre additionally made a distinction between income misplaced resulting from implementation of the GST and the financial slowdown arising out of the COVID-19 disaster.
The authorities mentioned its authorized obligation was solely to compensate states for losses arising out of the GST rollout.
(Except for the headline, this story has not been edited by NDTV employees and is revealed from a syndicated feed.)
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