Panel flags Rs 63,000-crore compensation cess shortfall in 2019-20

Instead, it has recommended that the present inverted duty structure be corrected, besides restructuring of GST rate slabs

The Goods and Services Tax (GST) Council was told on Wednesday that the central government might have a compensation cess shortage of Rs 63,200 crore in the current financial year. 

The calculation is from the Council's revenue augmentation panel, which also says this shortage could balloon to Rs 2 trillion by 2021-22. It has assumed revenue growth of five per cent this year; actual growth in April-November, the first eight months of the financial year, was 3.7 per cent.

In the best-case scenario presented by the panel, with a growth rate of 10 per cent, there will be a cess gap of