GST revenue share for urban local bodies to ensure predictable funding and enable urban infrastructure and capacity reforms.
Shri M. Venkaiah Naidu proposes earmarking a share of GST revenue for urban local bodies to ensure predictable, guaranteed funding to bridge a large municipal fiscal gap and free resources for mandated functions. He also advocates using PPPs with improved governance for urban infrastructure, prioritized capacity building funded through scheme allocations, and a package of urban reforms including e governance, a professional municipal cadre, City Development Plans, devolution of funds and functionaries, double entry accounting, revised building bye laws, improved revenue collection and municipal credit ratings, and scientific waste management.

Compensation to states: GST Amendment provides state revenue loss compensation on GST implementation following GST Council recommendation.
The Constitutional Amendment Bill provides for compensation to the states for revenue loss from GST implementation, to be provided by Parliament on the recommendation of the GST Council, for a period that may extend up to five years; it also contemplates exclusion of alcoholic liquor, phased inclusion of petroleum, and transitional compensation to states for CST phase out.