Part of it, ₹97,000 crore, would be paid out immediately and the balance over a deferred period to be mutually decided by the GST Council, the apex body guiding the implementation of the indirect tax
NEW DELHI : The entire sum of compensation owed to states on account of shortfall in collections of Goods and Services Tax (GST) will be “honoured”, the union government said on Monday.
Part of it, ₹97,000 crore, would be paid out immediately and the balance over a deferred period to be mutually decided by the GST Council, the apex body guiding the implementation of the indirect tax said.
The clarification by the union government just ahead of the GST Council meeting on 19 September, could potentially defuse the ugly face off witnessed in the last meeting between the centre and the states.
“Hundred percent (will be paid out),” a senior government official said. The person who did not wish to be identified also referred to the previous interview granted to Mint by finance minister Nirmala Sitharaman in which she has made this explicit.
Source: livemint
