The relation between the Centre and the states is not that of “giver and taker” and the GST Council will have to work out a mid-way solution for the GST collection shortfall keeping in mind that the central government too is bearing a huge revenue loss because of the Covid-19 pandemic, Bihar deputy chief minister Sushil Modi has said.

Non-BJP ruled states such as Punjab, Kerala, Delhi and Bengal are at loggerheads with the Centre over the financing of the GST shortfall.

“A huge borrowing by the Centre would have macro-economic impact. The relation between the Centre and the states is not that of ‘giver and taker’, we have to keep the spirit of co-operative federalism in mind and work out a mid way,” said Modi.