Compensation cess of Rs 200 billion to help govt cut fiscal deficit

For taking over some portion of compensation cess, govt got legal backing through an amendment to the GST (Compensation to States) Act in the monsoon session of Parliament

The Centre will get roughly Rs 200 billion from a corpus not used so far — the excess amount of the compensation cess collected — to help it narrow its fiscal deficit for 2018-19.
 
The excess amount refers to the kitty after distributing the compensation cess to the states. Every state’s revenues are estimated to grow by 14 per cent each year on the base of 2015-16, and wherever the growth rate is below that mark, the Centre compensates the states from the cess kitty.
 
For taking over some portion of the compensation cess, the government got legal