Request a demo

Thank you for your response

Our representative will get in touch with you shortly.

Please Fill the Details to download

Thank you for your response

India’s #1 GST software

1 click autofill GSTR-3B with G1 and 2B data

Download 2B data for multiple months in < 2mins

GSTR-2B vs purchase matching in under 1 min

OR
India’s No 1 GST software

Save upto 7% in taxes

Claim 100% ITC and save ~4% GST

3x faster experience

Save 2 man days every GSTIN month

Easy to connect

Connect with 100s of ERP’s, import data error-free

Still no clarity on amount for state compensation packages

Updated on:  

08 min read

Post the tenth meeting of the GST council on February 18th, there was good news in the air – the council had approved the bill to compensate states for possible revenue loss in the five years following GST implementation. However, there is still a fair amount of speculation surrounding the amount that is to be doled out as compensation with the Center staying stubbornly mum on numbers.

West Bengal Finance Minister Amit Mitra has thrown around the figure of Rs. 55,000 crores at some of the press meetings, and given that he is the chairman of the Empowered Committee of Ministers on GST, it is a figure we can hold on to, for now. But the mystery of how this number was arrived at is still unsolved. Experts were waiting for the revenue deficit figures in Budget 2017 to shed some light on this, but sadly that has also not worked out.

Why is it so difficult to reach a number?

One of the reasons why it may be difficult to reach absolute numbers is because the government has not yet decided which products fall under which tax slabs. This decision will probably be taken in the council’s next meeting in March, and post that we may expect to hear more about the compensation packages.

Another challenge facing the government is the issue of finding funds for this compensation. Experts assume that these funds could come from cess levied on the goods and services under the highest tax bracket of 28% – a category that is expected to include luxury cars, aerated beverages, cigarettes, and pan masala. Clean energy cess may also be part of the fund raising scheme.

Getting GST-ready before July 1

The deadline for GST rollout has been fixed, and as a business  now is the time to take the first steps to becoming GST-ready. This way, when the change comes, you will not be caught off guard! So, what can you do to be prepared for GST? Glad you asked:

  1. Get your enrollment done on time. To read more about the enrollment process and its relevance, Click here.
  2. Plan your logistics and warehousing requirement carefully. To read our detailed guide on impact analysis on logistics and warehousing, Click here.
  3. Adopt such platforms, technologies which will enable your business to be GST-compliant. Click here to get all updates and access a pool of GST Calculators.

Want an expert to explain GST to you? Get one, right here!

inline CTA
India’s Fastest and Most Advanced 2B Matching
Maximise ITC claims, use smart validations to correct your data and complete 2B matching in <1 minute