<h1>GST Council Debates Revenue Shortfall; States Oppose Borrowing, Urge Centre to Use Cess for Compensation.</h1> The GST Council meeting focused on addressing the revenue shortfall faced by states due to insufficient GST collections, exacerbated by the COVID-19 crisis. States governed by non-NDA parties opposed the central government's suggestion for states to borrow funds to cover deficits, arguing the Centre should fulfill its obligation to compensate states. The Centre, supported by legal opinions, claimed no obligation to cover shortfalls. Options discussed included market borrowing, increasing cess rates, or expanding items under the compensation cess. States like West Bengal, Punjab, Kerala, and Delhi urged the Centre to utilize existing cess collections to compensate for the shortfall, emphasizing the agreed compensation formula.