Gst Compensation

GST cess is set to expire in two years. What happens starting April 2026 is a decision that the government has to make.

Kerala faces serious financial threat, have to raise funds via cess in FY24: state FM Balagopal

"Due to natural calamities, COVID and below revenue-neutral GST rates, our funds have gone down. So states requested for extension of the compensation period by further five years. But the Union government is not taking any stand," Balagopal said.

GST compensation: West Bengal says Centre owes it over Rs 2,400 crore

Replying to assertions that West Bengal's dues have been neglected, Sitharaman had said in Parliament on Friday that GST compensation to states is released when the audited figures are provided, but West Bengal has not submitted those since 2017.

Unfair to blame GST for revenue woes, says CBIC chairman

India is on the right track on GST, Johri said, adding that business processes and IT systems have stabilized and so have the revenue collections

Interview | GST Council, not Centre, must take call on compensation, says Tamil Nadu’s PTR

The five-year compensation period for states under the Goods and Services Tax regime ends on June 30. According to Tamil Nadu Finance Minister Palanivel Thiaga Rajan, if the GST Council is truly a federal body, it must decide whether states should be compensated for any revenue shortfall beyond this month.

Dozen states seek GST compensation extension by five years, ministers say

According to top state ministers, dozen states have asked that the Goods and Service Tax (GST) compensation be prolonged by five years.

Why states must prepare for life without GST compensation

While states are demanding that compensation for the revenue loss from GST be continued beyond June 30, neither the states nor the Centre have many options on the issue.

GST Council to discuss compensation to states, tax on online gaming on June 29

The two heavyweight subjects are on the agenda for June 29 after the interim report on rate rationalisation of the Group of Ministers was accepted on June 28.

Chhattisgarh seeks extension of GST compensation for at least five years beyond June 30

The state will present a proposal in the ongoing GST Council meeting to continue with 14 percent protected revenue provision, minister TS Singhdeo said.

Curtain-raiser: What to expect from GST Council meeting

India’s GST Council, the apex decision-making body of the indirect tax regime that completes five years this week, is meeting in Chandigarh on 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.

State finances need top priority as many dangerously stare down a debt hole

Sunset of GST compensation next month, guarantees for power discom bonds, and extra borrowings for non-asset creating revenue expenditure could end up worsening state finances 

Extend GST compensation period for another 3 years: Congress to Centre

Under the GST law, states were guaranteed to be compensated bi-monthly for any loss of revenue in the first five years of GST implementation from July 1, 2017.

States yet to get Rs 53,489 crore as FY22 GST compensation from Centre

Maharashtra is owed the most at Rs 11, 563 crore, while Uttar Pradesh is a distant second at Rs 6,954 crore.

GST dispute | Some states may need compensation even after June FY23

The GST Constitutional Amendment Act guarantees GST compensation to states for five years ending June FY23.

GST compensation: Finance Ministry releases Rs 17,000 crore to states, UTs

With this, the total amount of compensation released to the States and UTs so far -- including the aforesaid amount during the FY2021-22 -- is Rs. 60,000 crore.

Centre releases full Rs 1.59 lakh cr to states this fiscal as back-to-back loan to compensate for GST shortfall

The Rs 44,000 crore being released now is funded from the Government of India securities issued in the current financial year, at a Weighted Average Yield of 5.69 per cent. No additional market borrowing by the central government is envisaged on account of this release.

States debt to hit Rs 71.4 lakh crore in FY22: Report

Stated differently, overall debt of the states, including guarantees, is likely to increase by Rs 7.2 lakh crore this fiscal to Rs 71.4 lakh crore, which is 33 per cent of their combined GSDP, the report said.

Karnataka CM meets FM Nirmala Sitharaman; demands extension of GST compensation to states for 3 more years

In the meeting, the CM informed Nirmala Sitharaman that the state GST collection has not yet stabilised in view of COVID-19 crisis, and it would be more helpful in this ongoing revenue crisis if the GST compensation to states is extended for three more years.

Should GST compensation be extended beyond 2022?

We should not forget that the ongoing pandemic is not only affecting the revenue of states, it is impacting the Centre too 

Centre working on ‘bank-driven', not government-driven, solution for bad assets: FM Nirmala Sitharaman

The Union Finance Minister while reacting to opposition's allegation of 'selling family silver', stated that the government for the first time has devised a clear strategy on divestment so that taxpayers' money is spent wisely, adding it wants few public sector enterprises in specified sectors to do well.

GST compensation | Chhattisgarh opts for special window, Jharkhand only state left

Chhattisgarh will now get Rs 3,109 crore through the special borrowing window put in place by the Centre to meet the GST implementation shortfall

GST compensation dues: Finance Ministry releases Rs 6,000 crore as second tranche to 16 states and 3 UTs

The Centre has facilitated loans of Rs 12,000 crore till date to 21 states and 3 Union territories which have opted for the borrowing option to meet GST comepsation shortfall

GST compensation issue | Centre offers truce, to borrow revenue shortfall of Rs 1.1 lakh crore as loans to states

The centre said that this would avoid differential rates of interest that individual states may be charged for their respective state development loans and would be an administratively easier arrangement.

GST Council Meet | Centre's move to permit 21 states to borrow Rs 97,000 crore is illegal: Kerala FM Thomas Isaac

Option one, which allows states to borrow Rs 97,000 crore through a special window facilitated by the RBI involves deferment of compensation payment beyond 5 years for which a GST Council decision is necessary as per AG’s opinion, and no such decision has been made in the Council, Thomas Isaac tweeted