The Central Government has released fund amounting Rs 8,698 crore to the states as compensation, after the implementation of the indirect taxation system.
Sushil Modi, Bihar Deputy Chief Minister said, “Rs 8,698 crore has been paid to states as compensation for July and August. This is 58 percent of the total cess revenue of Rs 15,060 crore in the two months.”
All of the states excluding Rajasthan and Arunachal Pradesh have been provided compensation for the starting two months i.e., July and August after the implementation of Goods and Services Tax (GST) from 1st July across the country.
The compensation was not provided to Arunachal Pradesh, as the state couldn’t file any claim due to some issues and there was some similar problem with Rajasthan.
Under the newly implemented indirect taxation system, an additional cess is imposed on the highest category of 28 percent tax on sin goods and luxury cars.
