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Which state got the maximum compensation to make up for revenue loss on account of Goods and Services Tax (GST) implementation?
  • a)
    Kerala
  • b)
    Gujarat
  • c)
    Maharashtra
  • d)
    Karnataka
  • e)
    Sikkim
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Which state got the maximum compensation to make up for revenue loss o...
Central Government has released Rs. 24500 crore compensation to states to make up for revenue loss on account of Goods and Services Tax (GST) implementation. This compensation is for the period between July-October 2017. Karnataka got maximum compensation (Rs 3271 crore) followed by Gujarat (Rs 2282 crore) and Punjab (Rs 2098 crore). The other states that required huge amount of compensation include Rajasthan (Rs 1911 crore), Bihar (Rs 1746 crore), Uttar Pradesh (Rs 1520 crore), West Bengal (Rs 1008 crore) and Odisha (Rs 1,020 crore). This compensation comes from cess (on top of the highest tax rate of 28 %) on luxury, demerit and sin goods.
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Which state got the maximum compensation to make up for revenue loss on account of Goods and Services Tax (GST) implementation?a)Keralab)Gujaratc)Maharashtrad)Karnatakae)SikkimCorrect answer is option 'D'. Can you explain this answer?
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