43RD GST COUNCIL MEETING

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43RD GST COUNCIL MEETING

12/10/2020

43^RDGST COUNCIL MEETING

43rd GST Council meeting held on 12th October 2020 this meeting was a continuation of the 42nd GST Council meeting, to discuss one agenda item, namely no. 9A.

Finance Minister Smt. Nirmala Sitharaman has chaired the GST Council meeting via video conferencing in the presence of Union Minister of State for Finance & Corporate Affairs, Shri. Anurag Thakur Finance Ministers of States & UTs and Senior officers from Union Government & States.

The main points of press briefing of FM:

Centre has issued a borrowing calendar, if I go beyond that to borrow, the G-Sec deals which are used as benchmark for every other borrowing will go up, this will hence increase borrowing costs for states & private sector too.

As regards shortfall in compensation, it is for everyone to see that cess collection is inadequate to meet the shortfall Since this is something which was not envisaged, the shortfall has to be met by borrowing. Increased borrowed costs is not something we can afford at a time when India is looking at more money to invest and to borrow to do business.

Increased borrowed costs is not something we can afford at a time when India is looking at more money to invest and to borrow to do business.

The impact would not be as severe, if states were to borrow States borrowing does not mean a chaotic situation, we will facilitate states so that some states end up paying high interest rates while others obtain loans at reasonable rate.

No consensus has been arrived on options presented to states in meeting GST compensation shortfall.