The GST Compensation Bill will provide a legal backing to the Centre’s promise to compensate the states if their revenue growth rate falls below 14% in the first five years of the goods and services tax (GST) roll out. “The compensation law would have the taxes subsumed and the revenue forgone by each state on account of GST implementation. Also Read: Centre, states divided on sharing of GST administrative powersThe winter session of Parliament begins on 16 November. The officials of the central government will finalise the draft GST Compensation Law by 15 November and thereafter it would be circulated to the states. 50,000 crore fund every year which will be utilised to compensate the states for first five years of GST roll out.

Source: Mint November 06, 2016 09:14 UTC