The cess, which is levied on products in the 28% GST slab such as aerated drinks, tobacco and automobiles, was meant to compensate states for their revenue losses in the first five years of GST till June 2022. It was extended till March 2026 to repay a ₹2.69 trillion debt raised by the Centre when the cess collection was not sufficient to pay the states during the pandemic years.
The cess may end even before March 2026 if the Centre is able to prepay the debt.
"If before March 2026 we are able to pay all the loans and pay some of the compensation due to be paid because of nonreceipt of audited figures from some of the states, the compensation cess cannot be levied beyond that," one of the persons cited above said on condition of anonymity.
"Products like tobacco and automobiles currently attracting cess over and above 28% GST cannot have GST compensation' cess after that. The GST Council will decide what is to be done after the compensation cess is removed... It can continue in some other form, no doubt," the person added.
Esta historia es de la edición February 14, 2024 de Mint Mumbai.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición February 14, 2024 de Mint Mumbai.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
7 myths about ADHD and how to handle it
Some adults with ADHD are misdiagnosed as having anxiety or depression as myths prevail even in the medical community
Why women bear the brunt of misdiagnosis
Girls are half as likely as boys to be diagnosed correctly as having ADHD, show studies
At these international marathons, it's ready, steady, swig
Can running and drinking go together? From France to Scotland, here are five races where running is a merry party
Indian IT firms should brace for Trump's second term
Restrictive visa, trade and other policies under Trump 2.0 may force a review of their US-centric business models
Freebies don't offer a long-term solution but let us not ban them
Keeping citizens dependent on handouts is not fiscally sustainable. India needs a transparent framework to regulate them
Is Nvidia's chief dreaming of selling us R2-D2-like robots?
It may turn out to be a good bet if the chip-maker keeps its risks low
Two ways the EPFO can get itself an image boost
India's state-run retirement fund would do itself a favour by resolving its high level of claim rejections and speeding up interest payments. Its digital makeover should signal efficiency
Forex card vs debit card: How to lower cross-border markup fees
Unlike debit cards, forex cards are not linked to your bank account, limiting your exposure to fraud and theft
India must reassess its rejection of the RCEP trade bloc
Joining it can work in our favour as global trade barriers get reshaped and value chains are forged
Armed hostility between Israel and Iran is very likely to escalate
Israel senses a high-risk high-return chance to reshape West Asia that Trump might green-light