GST compensation: Opposition states harden stance, threaten legal action

New Delhi: Opposition-ruled states have hardened their stance on centre's borrowing options to meet goods and services tax compensation cess deficit with some threatening legal recourse. While Kerala has asked the centre to convene a meeting of the GST Council immediately, Chhatisgarh said it is open to taking a legal recourse.

The centre has on Sunday indicated that 21 states and union territories had opted for the first option, entailing a borrowing of Rs 97,000 crore, and that states not choosing any of the two offers will not recieve any compensation till June 22.

Incidentally, Congress-ruled Puducherry has opted for the first option.This means that number (21 states) was adequate to pass any resolution in the GST Council if it is put to vote. States say the centre cannot force its decision on states that have rejected the borrowing options.