GST compensation cess may end before March 2026 deadline
GST compensation cess on select products may end sooner than March 2026 deadline due to strong GST collections.
The Goods and Services Tax (GST) compensation cess levied on products such as automobiles, liquor, cigarettes, aerated water and coal could end earlier than the March 31, 2026 deadline on the back of robust GST collections every month, two officials with direct knowledge of the matter said.
States have been already given “the entire provisionally admissible compensation” amounting to Rs.9.14 lakh crore for their revenue shortfalls in the transition period of five years ended June 2022, but the cess has been continued to retire the loan of Rs.2.69 lakh crore that was taken during the Covid pandemic for this purpose, they added, requesting anonymity.
