The upcoming GST Council meeting on September 17 will focus on the extension of compensation cess as the Council may also look into duty inversion in specific sectors. States are demanding the extension of compensation cess for another five years.
The provision of compensation cess for revenue losses to states on the account of GST rollout was for a period of five years from 2017. The state governments have been demanding the Centre to address the pending issue pertaining to compensation cess as well as the pending compensation payment for last year.
FM Nirmala Sitharaman had earlier committed after June 28 GST Council meeting that the Centre will hold a special meeting of the Council on the compensation cess issue.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today