Quick Summary
This meeting was an extension of the 42nd GST Council Meet. Key Updates from the 42nd GST Council Meeting can be read. GST Council Meeting held on 12th October 2020 was a continuation of the 42nd GST Council meeting, to discuss one agenda item, namely no. 9A. Discussions went on the issue of borrowing, extension of cess and so on. https://twitter.com/PIBMumbai/status/1315687690159833088 States asked some specific clarifications, which were given. Many of the clarifications were on Atto
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FAQ :
The meeting was an extension of the 42nd GST Council meeting, held to discuss borrowing options and the extension of cess collection to address the shortfall in GST compensation.
The GST Council unanimously agreed to extend cess collection beyond the initial five-year period to repay the principal and interest of the entire compensation shortfall.
No, a consensus could not be reached on the borrowing options presented to the states regarding the GST compensation shortfall.
The Finance Minister noted that if the Centre borrows beyond its calendar, it could increase borrowing costs for states and the private sector, which is not ideal for India's investment needs.
The Centre will facilitate borrowing for states, working with them and the RBI to estimate shortfalls and ensure they obtain loans at reasonable interest rates.
The Finance Minister highlighted the urgency of providing funds to states that are on the ground fighting COVID-19 and require financial support.
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