The Finance Ministry has confirmed that all Goods and Services Tax (GST) compensation dues for the five-year transition period have been paid to states and union territories. The only exceptions are Arunachal Pradesh and Manipur, pending final Accountant General certificates. This marks the end of the compensation scheme, with a Group of Ministers now tasked with exploring alternatives and advising on GST rate rationalisation.
The Finance Ministry has confirmed that all provisionally admissible GST compensation dues for the five-year transition period from July 1, 2017, to June 30, 2022, have been fully released to states and union territories. In a written reply to Parliament on July 22, 2025, the Ministry clarified that no dues remain pending except for Arunachal Pradesh and Manipur, where Accountant General (AG) certificates are still awaited for final settlement.
The clarification marks the formal closure of th
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to
CCI PRO
for unlimited access
Why Upgrade to
CCI PRO?
-
No Ads
-
WhatsApp Community
-
Daily E-Newsletter
-
Unlimited News Access
-
Profile Visitors
-
Link Social Profiles
-
Featured Job Posts
-
Pro Badge
-
Expert GST Guidance
-
Unlimited Forum Replies
-
Download Content in PDF
1 Year PLAN - Rs.1999
1799
(Excl. of GST ₹323)
2 Years PLAN - Rs.3499
3149
(Excl. of GST ₹566)
BEST VALUE
3 Years PLAN - Rs.4999
4499
(Excl. of GST ₹809)
View all CCI PRO benefits
Already a PRO member?
Login here
for an ad-free experience. 07941056694
FAQ :
Yes, the Finance Ministry has confirmed that all provisionally admissible GST compensation dues for the five-year transition period have been fully released to states and union territories.
Arunachal Pradesh and Manipur are the only states where final settlement of GST compensation dues is pending, as Accountant General certificates are still awaited.
A Group of Ministers (GoM) has been formed to explore viable alternatives to the GST compensation cess, which expired at the end of its mandated term.
No, the Finance Ministry has stated that there are no immediate plans for GST rate cuts. This issue is under consideration by the GST Council, awaiting the final report from the Group of Ministers on rate rationalisation.
GST rates are decided by the GST Council, a constitutional body comprising representatives from the Centre and all States/UTs, based on consensus.