Thread by @rishibagree

The TRUTH about 41st GST Council Meeting:

The single agenda was the compensation issue & The Centre made clear that the GST compensation dues to the States would be paid.
Attorney General said that GST compensation has to be paid for the transition period (2017-2022)

This has to be funded from the compensation cess fund. AG’s clear opinion was that the compensation gap cannot be met from the Consolidated Fund of India. He suggested that the compensation cess levy can be extended beyond 5 years, to meet the shortfall.

The States were provided two options by the Centre:

Option 1: To provide a special window to States, in consultation with RBI, to provide the Rs 97,000 cr at a low interest. This money can then be repaid after the transition 5 years are completed from the collection of cess.

Option 2: The entire GST compensation gap of Rs 2,35,000 crore of this year can be met by the States through borrowings, in consultation with RBI.

The States unanimously asked for one week’s time to deliberate on the issue and decide on the issue.
Some Opposition-led States are spreading false information and fake news about various aspects of the meeting.

The points above are the facts, and any other contrary info being put out is factually incorrect & irresponsible.
The Centre has not ‘thrust’ any solution on the States.The States have been given options & they unanimously asked for a week’s time to decide, which has been granted

There is no question of the Centre not honouring its commitment to the States.
The borrowing by the States, whichever option they choose, will be repaid after the 5yr from the collection of cess. Therefore, the point Centre reneging on its Constitutional obligation does not arise