Congress leader Rahul Gandhi on Monday took a jibe at the Centre and Prime Minister Narendra Modi over GST (Goods and Services Tax) compensation to states. 

“Centre promises GST revenue for States,” Gandhi tweeted, adding that the PM gave 1.4 lakh crore tax cuts to Corporates and bought two planes for himself for 8,400 crores. 

“Centre has no money to pay States,” so the Finance Minister asked states to borrow, Gandhi tweeted. 

Hitting out at the state governments, Gandhi asked, “Why is your CM mortgaging your future for Modi?”

In August, the Centre gave two options to the states: to borrow either Rs 97,000 crore from a special window facilitated by the Reserve Bank of India or Rs 2.35 lakh crore from the market, PTI reported.

To repay the borrowing, it had proposed extending the compensation cess levied on luxury, demerit and sin goods beyond 2022.

Following demand by some states, the amount of Rs 97,000 crore was increased to Rs 1.10 lakh crore.

As many as 21 states — which are mostly BJP-ruled or have supported it on various issues — have opted to borrow Rs 1.10 lakh crore to meet the compensation shortfall.

The Centre has released Rs 20,000 crore to the states towards the compensation shortfall so far in the current fiscal.

Under the GST structure, taxes are levied under 5, 12, 18 and 28% slabs.