Anshul Mathur, Partner, Lakshmikumaran & Sridharan Attorneys shares a quick byte on the 43rd GST Council Meeting
The discussions in the 43rd GST Council meeting were focussed on borrowing by the states and extension of compensation cess beyond the year 2022 to make up for the shortfall in collections. The Finance minister candidly accepted that even after three meetings on the issue there was no consensus reached, however, she described the situation as a “difference of opinion” rather than a “dispute between centre and states”. Ruling out the possibility of borrowing by the Centre due to adverse ramifications on cost of borrowing for states and private sector, it was discussed that the states who have opted for option I and are willing to borrow under the special window facilitated by the RBI, should not be stopped by other member states just because a unanimous decision is not reached. After this third consecutive meeting on the issue, taxpayers sincerely hope that the next meeting focuses on issues which directly affect them.