Journal Press India^®

The Goods and Services Tax 2017, was implemented in India, replacing the taxes levied by the Centre and States to eradicate the cascading effect of taxes. It is a destination-based tax as compared to the previous taxes that were origin-based. Due to it being a destination-based tax, this impacts the revenue that was previously earned by the States. For this, the Government had introduced the Goods and Services (Compensation to States) Act 2017 to compensate the States. The authors have tried to analyse the Compensation Act with regard to the recent changes in relation to the 49th GST Council Meeting, Finance Bill 2023 and the notifications issued thereafter by the CBIC. The authors also analysed the impact of the withdrawal of the GST Compensation cess once the extended period up to 31st March 2026 gets over.