New Delhi, October 12:

Union Finance Minister Nirmala Sitharaman to address a press conference on economic issues on Monday at 12.30 pm. FM’s address will be held ahead of GST Council meeting, which is scheduled from 4-6 pm.

The GST Council in its meeting on Monday is likely to discuss the suggestion of non-BJP ruled states of setting up a ministerial panel to develop consensus on the issue of compensation, sources said. The Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising of state finance ministers, will for the third time in a row discuss the issue of funding the shortfall of Goods and Services Tax (GST) revenue of states.

While some opposition ruled states are demanding that a Group of Ministers be set up to arrive at a decision on the mechanism for funding compensation shortfall, BJP ruled states, which have already opted for the borrowing option given by the Centre, are of the view that they should be given a go ahead so that they can get money quickly. The single agenda 43rd meeting of the Council will discuss on the way forward, sources said.

In its previous meeting last week, the Council had decided to extend the surcharge on taxes on luxury goods such as cars and tobacco products beyond June 2022, but failed to reach a consensus on ways to compensate states for loss of tax revenue. The projected total compensation shortfall in current fiscal stands at Rs 2.35 lakh crore.