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What is the compensation amount released by the Central Government to the states, for revenue loss after the implementation of Goods and Services Tax (GST)? 
  • a)
    Rs 800 crore
  • b)
    Rs 18698 crore
  • c)
    Rs 8698 crore
  • d)
    Rs 27698 crore
  • e)
    Rs 9898 crore
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
What is the compensation amount released by the Central Government to ...
Answer – 3. Rs 8698 crore
Explanation

Central Government has released Rs 8698 crore as compensation to states for revenue loss following implementation of Goods and Services Tax (GST). All states except Rajasthan and Arunachal Pradesh have been given compensation for the first two months (July-August) after GST rollout. Under GST framework, a cess is levied on top of 28 per cent tax on luxury cars, demerit and sin Goods like aerated drink and tobacco. Compensation to states for any revenue loss on account of GST implementation has been paid from revenue collected through this cess.
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