Chennai: Former Union Minister and Congress veteran P Chidambaram has hailed the States that rejected the two options given by the Union government to bridge the gap in the GST compensation cess. He urged them to stand firm at the next meeting of the GST council on 12 October.
“I compliment the 9-10 states that stood firm and rejected the two options given by the central government to bridge the gap in the GST compensation cess. The liability to provide the GST compensation to the full extent falls on the central government, as reluctantly admitted by the FM yesterday. Naturally, the onus of finding the resources also falls on the central government,” he tweeted.
Chidambaram added: “It is unfair and unjust to ask State governments to borrow the money. States must stand firm at the next meeting on 12th October.”
At its meeting on Monday, the GST Council failed to reach a consensus on ways to compensate the states for the loss of tax revenue.