government Goods and Services Tax (GST) has notified the Compensation Cess extension March 2026, Through gazette notification, Finance Ministry Confirmed the extension period till March 2026. The extension will also help states pay compensation for the month of May and June 2022.

The extension has been notified as per the agreed repayment schedule in the GST Council meeting of September 2021. The states have the extension facility to repay the borrowings made in the past to pay the promised compensation.

GST Compensation Cess It is levied by the Goods and Services Tax (Compensation to States) Act 2017. The objective of levying this cess is to compensate the states for loss of revenue on account of the implementation of GST as on 1st July 2017 for a period of five years or such period as is recommended by the GST Council.