On Thursday, the five-year window for states getting pay
safeguarded by the GST regulation will close and they might need to hang tight
for the following gathering for a choice on safeguarded remuneration income.
The two-day GST Council meeting in Chandigarh examined the
requests for stretching out remuneration to states to compensate for misfortune
in income after GST kicked in (July 2017) yet the conversation stayed
uncertain.
Finance Minister Nirmala Sitharaman who chaired the meeting
said, “Some states wanted the compensation to continue. 16-17 states spoke on
the issue of continuation of compensation. But no decision was made.”
Strangely, in the midst of solid requests for continuation
of remuneration interestingly, states like Uttar Pradesh encouraged all states
to make the right circumstances for a "slow weaning away from the pay
system".
Almost certainly, the conversation on the remuneration issue
might go on in the following GST Council meet in Madurai either on August 1 or
in the primary seven day stretch of the month.
The resistance governed states aren't content with end of
remuneration before they show up at a “revenue neutral” point. The Chhattisgarh
government in front of the meet had terminated a letter to the FM requesting a
5-year expansion.