Poket News

Centre's Climbdown On GST, Nirmala Sitharaman Writes To States

 

  • A slowdown in the economy has resulted in a drop in GST collections, upsetting the budgets of states that had given up their right to collect local taxes.
  • It has now been decided that the central government will initially receive the amount and then pass it on back-to-back to the states as loan. 
  • Sensitive to the fact that states need to be protected from the adverse consequences of higher borrowing in the form of interest liability and addition to debt.