Seven states and 1 UT have so far rejected the two options provided by the Centreon GST shortfall compensation.
Opposition-ruled states are planning to seek Prime Minister Narendra Modi's intervention on the issue of goods and service tax (GST) shortfall compensation.
Seven states and one union territory (UT) - Punjab, West Bengal, Kerala, Delhi, Chhattisgarh, Telangana, Rajasthan and Puducherry - have so far rejected the two options provided by the Centre, PTI reported.
Andhra Pradesh, Tamil Nadu and Odisha might also oppose the proposals and instead ask the Centre to borrow money to compensate the states, according to a report by The Economic Times.
"At least a dozen chief ministers will write to the Prime Minister individually...Kerala will be sending a letter tomorrow," Kerala Finance Minister Thomas Isaac told the publication.
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"Andhra Pradesh, Tamil Nadu and Odisha had taken strong position in the Council (opposing the proposals)...we hope they would also join," Isaac added.
Punjab Finance Minister Manpreet Singh Badal on August 31 wrote a letter to Union Finance Minister Nirmala Sitharaman, asking her to reconsider the GST Council's decision.
Badal had called the a "clear breach of the solemn and constitutional assurance and betrayal of spirit of cooperative federalism".
Under the Centre's first option, states can borrow the shortfall arising out of GST implementation (calculated at Rs 97,000 crore approximately) through the issue of debt under a Special Window coordinated by the Ministry of Finance.
The second The entire shortfall of Rs 2.35 lakh crore (including the COVID-impact portion) may be borrowed by states through the issue of market debt. The Centre will issue an official memorandum committing to repayment of principal on such debt from cess proceeds.