GST cess to stay 4 more years

The GST compensation cess, which was applicable until June 2022, is expected to stay in place for another four years to enable states to repay the 1.1 lakh crore loan and interest on it.

While the Centre has not officially commented on how long the cess has been extended, sources said that based on current cost it may be in place until 2026. The government has said that the revised tenure will depend on multiple factors, including tax buoyancy as well as the interest rate. Cess is applicable on cars, soft drinks, tobacco, pan masala and coal.