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Opposition ruled states demand release of Rs 35,000 crore compensation cess

Opposition-ruled states demand release of Rs 35,000 crore compensation cess

Opposition-ruled states demand release of Rs 35,000 crore compensation cess
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By Yashi Gupta  Oct 7, 2020 5:14:25 PM IST (Published)

In the GST council meeting held on October 5, the Centre had announced to release the compensation of Rs 20,000 crore to States towards the loss of revenue during FY21, first in this financial year.

Opposition-ruled states have demanded that the Centre transfer the entire compensation cess of Rs 35,000 crore collected between April and September. Compensation cess was established to compensate the states for any revenue loss because of the implementation of GST.

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This comes in after the Senior Congress leader P Chidambaram complimented the states for rejecting the two options given by the Centre to bridge the gap in the GST compensation cess and asked them to stay firm at the next meeting on October 12.
In the GST council meeting held on October 5, the Centre had announced to release the compensation of Rs 20,000 crore to States towards the loss of revenue during FY21, first in this financial year.
As the levy of Compensation cess was extended beyond June 2022, the states are firmly demanding the immediate release of Rs 11,000 crore from the integrated goods and services tax (IGST) collections, reported ET.
A government official said that the compensation is being released as per schedule. GST transition occurs to states in bimonthly installments. For the ongoing financial year, April-May, June-July, and August-September payments are pending.
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