Cess should not ideally be used for compensation: Drabu

J&K finance minister says administrative control over assessees a tricky issue to resolve

As the GST Council opted for the Centre's proposal to fund compensation through a cess over the peak rate on some luxury and sin items, Jammu and Kashmir finance minister Haseeb Drabu said the cess should not ideally be used for this purpose.  

He told Business Standard that if it were a rate, then revenue would get shared with states

Drabu, however, clarified that if collections from the cess is greater than compensation to states, the Centre will have to give the remaining amount to states.

According to rough estimates, the Centre will need Rs 50,000 crore a year