GST cess may stay beyond FY26, to take a new form

With most states not keen to let go of revenues, the Goods and Services tax (GST) compensation cess will likely be retained beyond January 2026, by when the compensation-related loans and interest would likely be fully repaid, sources said. However, the cess would be “re-branded” with a newly defined end use. Under the Constitution, a cess can be levied for specified purposes only, and…