GST Compensation: Centre Settles Dues for All States Except Arunachal & Manipur

The Centre has settled GST (Goods and Services Tax) compensation dues for "all states except Arunachal Pradesh and Manipur," where figures are still being verified. This move aims to conclude the pending compensation payments to states for revenue shortfalls post-GST implementation. A new mechanism for compensation payout is under review, likely to be data-linked and quarterly, to prevent future delays. The GST compensation cess will continue to be collected until March 2026 to repay past borrowings, impacting businesses dealing in luxury and sin goods.