Kejriwal told the Prime Minister: Center should consider viable options for giving GST dues!

Delhi Chief Minister Arvid Kejriwal on Tuesday wrote a letter to Prime Minister Narendra Modi urging him to consider legally viable and sustainable other options for providing Goods and Services Tax (GST) arrears to the states. The Chief Minister said that this will help the states to overcome the financial crisis caused by COVID-19.

He said that the two loan options offered by the Finance Ministry would primarily require states to borrow and thereafter the states would be "heavily burdened" to meet repayment liabilities. According to an official statement, the Chief Minister said that the GST Council should consider authorizing the Center to borrow from the states and extend the cess collection period beyond 2022.

Describing GST reform as a historic reform in India's indirect tax structure, Kejriwal said in the letter that assurance of GST compensation to states on reduction in tax collections is one of the pillars on which the entire structure of GST stands. He also said that all the states will work collectively to deal with the unprecedented situation which has come before the country due to Coronavirus.