The GST compensation window extension is not for states
The GST compensation levy extension has been facilitated to repay the borrowing made in past to pay promised compensation to states.
The central government has extended the Goods and Service Tax (GST) compensation levy till March 2026, a notification showed on Friday, June 24. However, this compensation window extension is not for states, the notice said. The GST compensation levy extension has been facilitated to repay the borrowing made in past to pay promised compensation to states.
“In exercise of the powers conferred by sub-section (2) of section 12 read with section 8 of the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017), the Central Government on the recommendations of the Council hereby makes the following rule,” read an extraordinary gazette from the finance ministry on Friday.
“The period for levy and collection of cess under sub-section (1) of section 8 of the Goods and Services Tax (Compensation to States) Act, 2017 shall be upto the 31st March, 2026,” further read the gazette.
The extension has been ordered to repay the borrowing made in the past to pay the promised compensation to states. The GST levy extension will also help in paying Compensation to states due for the month of May and June 2022.
(Details to be added soon)
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Source: News18