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GST Council decides to extend compensation cess beyond June 2022: Sitharaman -Aparna Banerjea

-Livemint.com

* Nobody is going to be denied the compensation which has arisen out of implementation of GST and COVID impact. A discussion with states is on,' says Sitharaman

* Sitharaman adds that compensation cess collected this year amounting to about 20,000 crore will get disbursed to all states by tonight

Union Finance Minister Nirmala Sitharaman during the 42nd Goods and Services Tax (GST) Council meeting today decided to extend compensation cess beyond 2022.

"Levy of Compensation Cess to be extended beyond the transition period of five years i.e. beyond June, 2022, for such period as may be required to meet the revenue gap. Further details to be worked out," the ministry said in a statement.

While as many as 21 states, mostly ruled by Bhartiya Janata Party or parties which have supported it on issues, had till mid-September opted to borrow 97,000 crore to meet the GST revenue shortfall in the current fiscal, most opposition-led states like West Bengal, Punjab and Kerala continue to demand that the centre should borrow instead of the states and another meeting will take place next week.

"10 states demand that full compensation should be paid to the states during the current year as per clauses in the law and centre should borrow. Decision was postponed to the next meeting on 12th of October," Kerala finance minister Thomas Isaac said.

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