Minutes: GST Council Forms Group to Review State Revenue Impact and Compensation Cess Structure Beyond 2026.

The GST Council approved formation of a GoM on restructuring Compensation Cess to examine revenue impacts on states post-GST implementation. Key points: Karnataka raised concerns about revenue loss of approximately 0.7% of GSDP despite higher GST collections and growth rates compared to national average. The state clarified this was due to being a producer state under destination-based taxation. The Council agreed to form a GoM chaired by Minister of State (Finance) to: - Analyze state-wise revenue data considering COVID-19 impacts - Review compensation cess structure beyond March 2026 - Examine challenges faced by manufacturing states - Consider solutions within GST's destination-based framework Pre vs Post-GST comparison shows: - Pre-GST ..... .....

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