The Jharkhand government has finally decided to accept the Centre’s compensation formula to meet the GST cess shortfall.

State finance minister Rameshwar Oraon told The Telegraph: “We have decided to accept the first option.” Other states, including Bengal and Chhattisgarh, also did the same, he added.

The state had certain issues relating to the principal loan amount and its interest that needed to be sorted out, he had said on Thursday, adding he could not do it as he had to be hospitalised after he tested positive for Covid-19.

“We decided to choose the first option as both the principal and interest are to be paid by the GST Council (out of the GST compensation cess),” Oraon said, adding the state would not be burdened with paying the interest on the loan amount.

“Our decision is being conveyed to the Centre,” he said when asked if the state had already informed the Centre about its willingness to accept the first option of the compensation package.