Finance Minister Nirmala Sitharaman on Friday stated that the Centre would apply the same formula on GST compensation cess as last year. The FM estimated that the Centre will have to borrow ₹1.58 lakh crore to pass it on to states. "On GST compensation cess, same formula as last year to be adopted this year too. Sitharaman said that a special session will be conducted to discuss modalities of the GST compensation cess such as collection, distribution, and time limit. The collected compensation cess flows into the Consolidated Fund of India and then transferred to the Public Account of India, where a GST compensation cess account has been created.

Source: Mint May 28, 2021 15:33 UTC