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The Group of Ministers (GoM) responsible for revising the Cess has asked for an extension till June 30, 2025, to finalize the cess map, sources told Business Today TV.
The decision follows the discussions held at the 54th GST Council meeting in September 2024, where the GoM was set to come up with a proposal to replace the Compensation Cess after its abolition in 2026.
In its first two meetings, on October 16 and December 12, 2024, the GoM focused on two main issues: continuing the license through FY 2025-26 and distributing any remaining funds after the project ends. The GoM has agreed to maintain the funds till March 31, 2026, at the current rates. In addition, any amount remaining after clearing the arrears will be shared equally between the Center and the States, in accordance with the provisions of the GST Compensation Cess Act.
However, the GoM agreed that more time is needed to address the legal, regulatory, and operational issues related to the renewable sector, especially government emissions. As a result, the team decided to seek additional time to thoroughly assess the situation before proposing a new strategy.
The 10-member GoM is chaired by Minister of State for Finance Pankaj Chaudhary, and includes members from Assam, Chhattisgarh, Gujarat, Karnataka, Madhya Pradesh, Punjab, Tamil Nadu, Uttar Pradesh and West Bengal. The group was tasked with submitting its first report by December 31, 2024.
