The GST Council will decide on the modalities for appropriating the revenue collected by levying compensation cess on luxury, sin and demerit goods beyond March 2026, the deadline to repay loans taken by Centre to compensate states for revenue loss during Covid, an official said.
In order to meet the resource gap of the states due to short release of compensation, the Centre borrowed and released Rs 2.69 lakh crore in 2020-21 and 2021-22 as back-to-back loans to meet a part of the shortfall in cess collection. This loan is to be repaid by March 2026.
Source: www.business-standard.com
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