GST revenue compensation protects states against transitional revenue loss, including temporary additional tax and tapering central support.
The Constitution Amendment Bill on GST provides transitional fiscal measures to ensure States suffer no revenue loss on implementation: a temporary additional non vatable tax on inter State supplies of goods assigned to originating States for a limited period, and central compensation to States on a tapering basis during the transition, with the GST Council to recommend duration and related modalities.

Goods and Services Tax concurrent taxing power establishes dual CGST/SGST and a GST Council to harmonise rates and rules.
The Bill confers concurrent power on Parliament and State Legislatures to levy Goods and Services Tax, creates constitutional provisions-Article 246A, Article 269A and Article 279A-establishing the levy and apportionment rules for intra and inter State supplies and constituting a Goods and Services Tax Council to recommend rates, exemptions, place of supply principles and dispute resolution. It prescribes a dual GST structure (CGST and SGST) with IGST for inter State supplies, seamless input tax credit across States, subsumption of specified Central and State indirect taxes, a temporary additional inter state tax assigned to origin States, and compensation to States for revenue loss for a limited period.