Gst Compensation Cess

The compensation cess, levied on luxury goods, tobacco, coal, and SUVs, is expected to bring in Rs 1.67 lakh crore this fiscal year.

GST Council Meet: Rate changes on some items likely, compensation for states tops agenda

The 47th meeting of the GST Council, headed by Union Finance Minister Nirmala Sitharaman and comprising representatives of all states and UTs, is scheduled for June 28-29.

Govt notifies GST compensation cess extension until March 2026

The imposition of GST compensation cess on certain goods and services had already been extended until March 2026 to make up for the borrowings and arrears of compensation paid to states in the last two financial years.

No adversarial relationship between Centre and states on GST: FM Sitharaman

The FM stated that the compensation cess would continue till March 2026 and all decisions regarding the same would be discussed in the GST Council.

GST compensation cess on vehicles and tobacco might stay till 2025-26

Extending the levy of cess till 2025-26 needed to compensate states for GST revenue shortfall, estimates Finance Commission

Rajasthan becomes first Congress-ruled state to opt for borrowing option to meet GST revenue shortfall

With Rajasthan also opting for borrowing Option-1, the number of states/UTs that have agreed to borrowing Rs 1.1 lakh crore through a Special Window facilitated by the RBI has risen to 22 States and three UTs

GST dues — Make the best use of extra time

Back channel talks should be opened in the interim to help the GST Council reach a consensus at the next meeting on the issue of compensating states

An MMT perspective of the GST shortfall quandary

The MMT unequivocally asserts that an economically sovereign government which issues its own fiat currency does not face a solvency issue in its own currency. The same cannot be said for state governments or municipalities, which are more like the private sector in so far as they are users of currency

GST compensation uncertainties pose key risk to fiscal health of states

For many of the states to remain within their fiscal deficit/borrowing threshold for FY21, capital expenditure would have to be cut or deferred

GST — The compensation conundrum

States’ proposal to extend the time period looks sensible at a time when Centre’s ability to pay them their dues looks limited 

Govt may levy commodity-wise rate slab for GST compensation cess

The government may levy a proposed Goods and Services Tax (GST) compensation cess commodity-wise in a rate slab, according to an official privy to the GST Council meeting which is underway, reports CNBC-TV18‘s Sapna Das.