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GST shortfall situation becomes clearer, govt

01 Nov 2020

India may need to borrow more for a second straight year to compensate its states for their revenue loss due to a shortfall in the Goods and Services Tax (GST) collection, according to people with knowledge of the matter.

The additional borrowing requirement is estimated at Rs 1.58 lakh crore ($21.7 billion) in the fiscal year started April 1, said the people, who asked not to be identified citing rules. A panel on goods and services tax will meet on Friday to discuss compensation to states, among other issues.