InvestorQ : Has there been a resolution to outstanding dues of states in the GST Council Meeting?
diksha shah made post

Has there been a resolution to outstanding dues of states in the GST Council Meeting?

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3 months ago
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I will not say there has been any solution at the state level but there has certainly been some kind of temporary mid-way that has been found by the GST Council although most of the states are not too happy with the stop-gap solution offered.

GST Council, in its meeting on 27 August, had given the Indian states 2 choices for borrowing to meet their revenue shortfalls. They could either borrow the revenue shortfall of Rs.2.35 trillion or the cess collection of Rs.95,444 crore from the open market.

The government would offer a special window to the states and that would most likely be a kind of guarantee wherein states can borrow without impacting their credit rating standing. The states have agreed to revert on this proposal within 7 days after which it will be implemented.

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