GST Compensation Fund framework governs cess credits, State compensation payments, surplus sharing, shortfall recovery, and audit requirements. The GST Compensation Fund is a non-lapsable fund in the public account of India, credited with cess proceeds and other recommended amounts for payment of ... Summary
Goods and Services Tax (Compensation to States) Amendment Act, 2018
GST Compensation Fund framework governs cess credits, State compensation payments, surplus sharing, shortfall recovery, and audit requirements.
The GST Compensation Fund is a non-lapsable fund in the public account of India, credited with cess proceeds and other recommended amounts for payment of compensation to States. Unutilised balances are shared between the Centre and the States under the statutory distribution mechanism, including a recovery arrangement for shortfalls against compensation payable. The Fund's accounts must be audited by the Comptroller and Auditor-General of India, and the certified accounts and audit report laid before each House of Parliament.
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