GST Compensation: State govts staring at a fiscal cliff

GST compensation has turned out to be a significant portion of many states’ overall revenue receipts over the recent years. Such compensation was meant to be provided for a period of five years after the transition to the regime, and ends on June 30, 2022. However, with the pandemic battering state finances over the last two years, an extension of GST compensation beyond the original five-year per…