Centre to borrow Rs 1.1 lakh crore for meeting GST compensation shortfall: Finance ministry

NEW DELHI: The ministry of finance on Wednesday said that the Centre will borrow the estimated shortfall of Rs 1.1 lakh crore to meet the GST compensation shortfall.
The amount to be borrowed will be passed on to the States as a back-to-back loan in lieu of GST compensation cess releases, the ministry said in an official release.
The announcement comes after two back to back meetings of the GST Council ended without reaching any consensus over ways to meet GST shortfall for states.