Current Affairs - Economy - Discussion

The Goods and Services Tax (GST) Compensation Cess is set to expire in March 2026, as decided by the GST Council. This cess was introduced to compensate states for revenue loss due to the implementation of GST and was extended till March 2026 to repay a ₹2.69 lakh crore loan taken during the COVID-19 pandemic. A Group of Ministers (GoM) has been formed to determine the taxation of luxury, sin, and demerit goods after the cess ends. The expiration of the cess will have implications for taxation and revenue distribution among states.