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The Group of Ministers (GoM) tasked with restructuring the Compensation Cess has requested an extension till June 30, 2025, to finalise the roadmap for the cess, sources inform Enterprise Right now TV.
This resolution follows discussions held throughout the 54th GST Council assembly in September 2024, the place the GoM was fashioned to suggest a substitute for the Compensation Cess after its abolition in 2026.
In its first two conferences, on October 16 and December 12, 2024, the GoM targeted on two key points: the continuation of the cess till FY 2025-26 and the distribution of any surplus funds as soon as the cess ends. The GoM agreed that the cess ought to stay in place till March 31, 2026, on the present charges. Moreover, any extra assortment remaining after settling excellent loans shall be break up equally between the Centre and States, in step with the provisions of the GST Compensation Cess Act.
Nevertheless, the GoM acknowledged that extra time is required to handle the constitutional, authorized, and operational points associated to the post-cess part, significantly the impression on state revenues. In consequence, the panel determined to hunt an extension to raised analyse the state of affairs earlier than proposing a brand new plan of action.
The ten-member GoM is chaired by Minister of State for Finance Pankaj Chaudhary, and consists of members from Assam, Chhattisgarh, Gujarat, Karnataka, Madhya Pradesh, Punjab, Tamil Nadu, Uttar Pradesh and West Bengal. The group was tasked to submit its first report by December 31, 2024.
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