States convey support for compensation cess merger with 28% GST slab

State FMs, in first meeting of GoM, suggest no new item in lists of luxury, sin, and demerit goods until transition

State governments have conveyed to the Centre their support for the merger of the compensation cess with the highest goods and services tax (GST) slab of 28 per cent after March 2026, when the existing regime expires.

In the first meeting of the Group of Ministers (GoM) on GST compensation, led by Union Minister of State for Finance Pankaj Chaudhary, on Wednesday, states advocated that during the transition period towards the cess merger, no additional goods should be added to the existing lists of luxury, sin, and demerit goods.

"All states have requested the merging of the