7 non-BJP-ruled states seek GST loss compensation

New Delhi (TIP): Seven States ruled by the Congress and other Opposition parties have demanded that the Centre compensate tax losses to the States under the provisions of the Central Goods and Services Tax (GST) Act at the earliest and enhance the additional borrowing limit to 5% of the Gross State Domestic Product.

The Finance Ministers of non-BJP-ruled States raised the demands at a virtual meeting hosted by Rajasthan Urban Development and Housing Minister Shanti Dhariwal ahead of the GST Council’s meeting scheduled for May 28. The States also sought waiving of all taxes on the goods purchased for fighting the Covid-19 pandemic.

Dhariwal, who represents the Rajasthan government in the GST Council, said on Thursday that the Finance Ministers of all States would “remain united” on these issues and raise them effectively before Union Finance Minister Nirmala Sitharaman at the GST Council’s meeting.

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