The GST Council meeting later this month is likely to discuss a revamp of the Goods and Services Tax (GST) regime, with a focus on streamlining rates and phasing out the compensation cess, which will expire in March 2026. Government officials said the compensation cess could be phased out earlier, with a new tax likely in its place. The cess is a levy on luxury and sin goods to compensate states for revenue losses in the initial years of GST. Once the compensation dues have all been cleared, the compensation cess will be withdrawn, and a new GST or an increase in the 28% GST on those items will be introduced, with the aim to maintain revenue at current levels.
Source A2ztaxcorp
