11 states to require GST compensation of Rs 9,500 cr in FY18: India Ratings

States will get full compensation for the first five years of GST roll-out

India Ratings expects that 11 states will require compensation of Rs 9,500 crore under the goods and services tax (GST) regime in the current financial year, subject to certain assumptions. 

The sum is much less than the generally perceived Rs 50,000 crore. 

India Ratings’ Chief Economist Devendra Pant says GST revenues of all states combined will grow at a compound annual growth rate (CAGR) of 16.6 per cent in FY18 over FY16. 

The situation varies at the state level. Andhra Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Madhya Pradesh, Odisha, Punjab and Tamil Nadu might need compensation from the Centre for any revenue loss under