NEW DELHI: As many as seven non-BJP ruled states, including Kerala and Punjab, besides Union Territory Puducherry on Monday rejected the Centre’s suggestion of states borrowing to make up for the GST shortfall, saying the constitutional liability lies with the Union Government.
At an informal meeting on Monday, six non-BJP ruled states — Punjab, West Bengal, Kerala, Delhi, Chhattisgarh and Telangana — felt that an alternative mechanism should be worked out to compensate the GST revenue shortfall.
Besides, Congress-ruled Rajasthan and Puducherry too said they will follow suit on the issue of compensation.
Punjab Finance Minister Manpreet Singh Badal said if states have to borrow, then the Centre will have to amend compensation law which says that the Central Government will compensate states for loss of revenue arising out of implementation of the Goods and Services Tax (GST). (AGENCIES)
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