Finance Minister extends the compensation cess beyond 2022 in the 42nd GST council meeting.
Finance Minister Nirmala Sitharaman during the 42nd GST council meeting reported today that it has been decided to extend the compensation cees beyond 2022 and all the amount collected would be returned back to the states by tonight.
"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.
Among 29 States, 21 states are mostly ruled by the BJP which has supported the issue opted out to borrow the Rs97,000 crore to meet the GST revenue shortfall. West Bengal and many other states opposed the orders of revenue collection demands that the center should borrow instead of the state and another meeting should take place next week.
