( Originally published on Jul 30, 2020 )
GST Council can take call on borrowing from market to compensate states: Attorney General
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Under the GST framework, any decision on compensation and how it needs to be provided rests with the council, according to a person familiar with the AG’s opinion. The GST(Compensation to States) Act, 2017 allows for paying compensation to states over a five-year transition period for any potential loss in revenues due to implementation of the tax.
ET Bureau
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NEW DELHI: The attorney general has said the Goods and Services Tax (GST) Council can decide whether a market borrowing mechanism can be established to compensate states for revenue losses due to implementation of the indirect tax, said people with knowledge of the matter. The council had sought the opinion of the government’s top law officer on the suggestion by states that if revenues fall short, funds should be raised by the council from the
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