A crucial meeting of the GST Council on Monday failed to reach a consensus on ways to compensate states as the panel was split into political lines over using borrowing as a tool.

Briefing reporters after a marathon meeting of the panel, finance minister Nirmala Sitharaman said 21 states had opted for one of the two options the Centre had previously suggested for borrowing to meet the shortfall in GST collections.

She said the panel decided to extend using GST cess collections to compensate states beyond previously agreed June 2022 timeframe.

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