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WB, Kerala agree to GST shortfall plan

Juliet Woodard by Juliet Woodard
November 25, 2020
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West Bengal and Kerala have accepted the Centre’s proposal to meet the shortfall in revenue to compensate States for implementing the Goods and Services Tax (GST) through a special borrowing window. “Kerala and West Bengal will get ₹10,197 crore through the special borrowing window to meet the GST implementation shortfall and permission to raise an additional ₹11,309 crore through borrowings,” the Finance Ministry said. The development comes a day after West Bengal Chief Minister Mamata Banerjee raised the issue at a meeting with Prime Minister Narendra Modi. Kerala had earlier planned to take legal recourse against the Centre’s solution on the GST compensation impasse after a consensus proved elusive in the GST Council.

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Juliet Woodard

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