Q.2)The GST compensation cess was proposed in order to help states to recover their revenue losses due to implementation of GST. Critically analyze with respect to recent Centre-state dispute on compensation cess.

Why this question:

GST Compensation Cess has been a point of concern in the evolving Centre- state relations.

Key demand of the question:

Importance of GST compensation cess and issues associated with it and measures to resolve it.


Critically analyze- The key to tackling this question is providing ample evidence to support the claims. Ensure that the analysis is balanced by shedding light on, and presenting a critique of, and alternative perspectives. Present extensive evidence taken from a varying range of sources.


Give a brief introduction about the GST compensation cess, why it was formed and its duration.


In the first part, mention the need for the cess and the impact it would create.

In the next part, talk about the increasing dispute between Centre and state for the cess, reasons for the dispute- late compensation, insufficient amount, etc. and the stands of Centre as well as state.


Conclude with a way forward for the resolution of the dispute.