The two-day Goods and Services Tax (GST) Council meeting, which begins on Tuesday in Chandigarh, is likely to be action-packed. Shrimi Choudhary explains the issues that the Council is likely to take up:
Compensation extension
Issue: While the Centre has in-principle agreed to extend the compensation cess until March 2026 for repaying debt, many states are seeking at least two-year extension of the regime citing revenue shortfall. The cess, meant to compensate states for GST-linked loss of revenue, is to end on June 30, 2022.
Expected: The Council is unlikely to consider states’ demand for status quo as official data