GST News: No decision on extending GST compensation to states | India Business News

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CHANDIGARH: About a dozen states cutting across party lines on Wednesday pitched for extending the mechanism to compensate states for revenue lost from the implementation of GST beyond June 30, but no decision was taken.
Briefing reporters about deliberations at the two-day meeting of the GST Council here, Union finance minister Nirmala Sitharaman said finance and other ministers of 16 states spoke on the compensation issue.
Of the 16 states, 3-4 spoke of evolving their own revenue stream to break from the compensation mechanism, she said.
The Centre did not reveal its mind on the issue.
When a nationwide Goods and Services Tax (GST) subsumed 17 central and state levies from July 1, 2017, it was decided that states will be compensated for any loss of revenue from the new tax for five years. That five-year term is ending on June 30.
With two years being lost in the pandemic, states…

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