Govt confirms compensation to states’ revenue loss; due to GST; heres more
In a significant reply, the government has conceded that the revenue loss to states on account of GST implementation was Rs 24,500 crore between July-October.
The central government, thus, has released compensation to make up for it.
As per the details of GST compensation released to states as on November 30, Karnataka got maximum compensation from the Centre at Rs 3,271 crore, followed by Gujarat (Rs 2,282 crore) and Punjab (Rs 2,098 crore).
Under the Goods and Services Tax (GST) regime, a cess is levied on luxury, demerit and sin goods to make good the loss suffered by the states on account of roll out of the new indirect tax regime.
This is levied on top of the highest tax rate of 28 per cent on this goods.
The other states that required hefty compensation include Rajasthan (Rs 1,911 crore), Bihar (Rs 1,746 crore), Uttar Pradesh (Rs 1,520 crore), West Bengal (Rs 1,008 crore) and Odisha (Rs 1,020 crore). >