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Wednesday, August 6, 2025
TopicGST

Topic: GST

52% higher borrowing, big drop in revenue — why states are despairing about their finances

Contraction in economy due to lockdown, extra spending on Covid and shortfall in GST compensation have left states scrambling for money.

GST compensation cess less than one-fifth of total shortfall, Maharashtra among worst hit

Finance ministry says Maharashtra, Karnataka, UP, Gujarat, Tamil Nadu reported largest shortfall in GST collections. Three BJP-ruled states agreed to borrow to meet the shortfall.

Why Centre and not states should borrow to resolve GST compensation impasse

Central govt has argued that states have more headroom to borrow, but estimates suggest that states’ borrowing costs are at least 0.5 percentage points higher.

13 states submit borrowing option for GST shortfall, only Manipur opts to borrow from market

The 13 states include those ruled by the BJP and others like Odisha and Andhra Pradesh, ruled by parties that have supported it on various issues.

Centre vs states GST row doesn’t matter. What matters is reviving economy & a borrowing plan

Since general government debt will rise regardless of who borrows for GST compensation, a plan to move to a sustained borrowing trajectory should be made.

GST an absolute failure, 2nd major attack on India’s unorganised economy, says Rahul Gandhi

Rahul Gandhi alleged that the NDA government has kept four different tax slabs to help big industrialists with means and contacts to change the taxes under the GST regime.

Why India’s bond markets are loving the GST fight between Modi govt and states

The bond market knows New Delhi is terrified of its wrath & is ignoring the simplest option of raising money on its own to fund states in the GST fight.

States politicising tax shortfall, govt has given best package, says GST veteran Sushil Modi

Bihar Deputy CM Sushil Kumar Modi defends central govt’s suggestion that states borrow to make up for GST shortfall, saying both sides should appreciate constraints faced by the other. 

Dear Narendra Modi, please suspend your PR for just two years and focus on India

We need to think beyond post-Covid recovery and ask the larger question: how do we get back to 7-8% GDP growth?

Mamata writes to Modi, says concerns raised by him & Jaitley on GST now becoming a reality

West Bengal CM Mamata Banerjee urges PM Modi to intervene and not belie the trust of the states and ‘violate’ the very premise of federalism.

On Camera

The court is not Rahul Gandhi’s uncle. Its job is to protect rights, not preach

Which humanitarian crisis should be prioritised, which words are ‘simple’ enough to avoid hurt feelings, or who is a ‘true Indian’, are not questions warranting court input.

BJP MPs go full throttle against Trump even as govt hails enduring India-US ties amid tariff tension

New Delhi: While the Indian government has made a measured response to the 25 percent trade tariff imposed by Donald Trump, many in the BJP...

Trump feared India could arm BrahMos with nuclear warhead to target Pakistan in Op Sindoor—WSJ report

New Delhi: During Operation Sindoor, the United States which had received intelligence suggesting that India had launched BrahMos cruise missiles to strike targets inside...

Pakistan, Dhaka have played Washington well. Back home, Modi ecosystem has an inner conflict

To protect ourselves from Trumpian diplomacy, first we must introspect the bipolarity within our establishment discourse.