GST aid to states may remain for two more years

The Centre is weighing a few options to give some revenue relief to state governments hit by the termination of the Goods and Services Tax (GST) compensation effective June 30, 2022. Under the new mechanism being worked out, states will get revenue protection much lower than a 14% annual growth enjoyed by them in the five years through June 30, and for a shorter period, say, two years. The idea is…