6 CMs write to Centre, reject 2 GST compensation options

Six chief ministers have written to the Centre over the compensation for shortfall in GST collection due the coronavirus pandemic. Chief ministers of West Bengal, Delhi, Chhatisgarh, Kerala, Tamil Nadu and Telangana rejected the two repayment options given by the Centre and reminded it that it was legally bound to reimburse states' loss of revenue in the first 5 years of the GST regime. Mamata Banerjee wrote that Centre's repayment option of borrowing money to finance the GST shortfall amounted to betrayal of the states' trust in the Centre. Kerala Chief Minister Pinarayi Vijayan echoed his Bengal counterpart's sentiment and added that it was in accordance with the understanding between state govts and the union govt. Arvind Kejriwal wrote that the borrowing option will put an onerous burden on states already reeling under financial stress. Tamil Nadu Chief Minister E Palaniswami too stressed on non-viability of the Centre's options.