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of <h1>Base Year for GST Compensation to States Set as Financial Year Ending March 31, 2016 Under 2016 Act</h1> For calculating the compensation amount payable to states during the transition period under the Goods and Services Tax (Compensation to the States for Loss of Revenue) Act, 2016, the financial year ending on 31st March 2016 is designated as the base year. This base year serves as the reference point for determining the revenue loss compensation owed to states in subsequent financial years.
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