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The Hindu
The Hindu
National
Special Correspondent

CM writes to PM on GST compensation

Pinarayi Vijayan Narendra Modi

Chief Minister Pinarayi Vijayan on Thursday urged Prime Minister Narendra Modi to extend GST compensation for States till 2027.

In a letter to Mr. Modi, Mr. Vijayan requested the Prime Minister to view the request sympathetically. The Centre had promised to pay compensation for any shortfall in State revenues caused by the GST regime in the initial five-year introductory phase.

The Centre and States introduced the GST regime in 2017 to harmonise the value-added tax structure to prevent the cascading effect of regional taxes. The States had forgone their revenue autonomy in some measure for value-added tax rationalisation.

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