GST compensation cess period already extended till March 2026: FM Nirmala Sitharaman
Bengaluru, Mar 9: Union Finance Minister Nirmala Sitharaman on Wednesday said the GST compensation cess period has already been extended till March 2026 to enable the Centre to repay loans taken to compensate all states for the year 2020.
During an interaction with reporters here, she said, "It's not just for me to take a call. It's for the GST council to decide and we have discussed it." The Union Minister was responding to a query on Karnataka Chief Minister Basavaraj Bommai's statement requesting the Centre to extend the GST compensation period, which ends in June. Elaborating further, Sitharaman said the GST council has already decided to extend the compensation cess period till March 2026. "It is already extended for paying off the loan, which was taken for all the states, for the compensation that could not be paid in 2020. And again, which could not be somewhat, not fully, paid in 2021," the Finance Minister said.
As for the GST amount between 2020 and 2021, which was due to the states, with compounded interest at 14 per cent each year, she said in view of it, the central government took a conscious decision at the GST council meeting that it will borrow back-to-back and give it to the states.
"Both the loan and the repayment, together with the interest itself, will require compensation cess to be extended till March 2026 and that's what we have done. So the amount collected from the extended cess collection will go towards payment of the compensation amount borrowed and the interest on it," the FM explained.
On the impact on import of edible oil into the country due to the Ukraine crisis, Sitharaman said India is looking for alternatives.
"Edible oil is also an area where we have challenges, where we have to see how we can address it," she said.
India is encouraging farmers in the north east region to grow palm, since the climatic condition there is similar to Malaysia and Indonesia.
We have taken up palm mission and are helping farmers get into production of palm oil in those areas, where palm can be cultivated, because we import huge quantities of palm oil, both the crude and refined, she added.
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What is Iran’s 10-point plan? Key demands ahead of US talks in Islamabad
Tehran/Islamabad: Iran has outlined a 10-point plan as the basis for upcoming talks with the United States, expected to begin in Islamabad on April 11, according to a statement from the Iranian Supreme National Security Council.
The plan lays out Tehran’s key political, military and economic demands, and is being seen as a framework for negotiations following the recent escalation in the region.
Strait of Hormuz at the centre
A major focus of the plan is the Strait of Hormuz, a critical global shipping route. Iran has proposed “controlled passage through the Strait of Hormuz in coordination with the Iranian armed forces,” which it says would give the country a unique economic and geopolitical position.
The plan also calls for the “establishment of a safe transit protocol” in the Strait that would guarantee Iran’s dominance under an agreed mechanism.
Call to end conflict
Iran has demanded “the necessity of ending the war against all elements of the axis of resistance,” signalling its expectation that hostilities should stop not only in Iran but also involving allied groups in the region.
US troop withdrawal
Another key demand is the “withdrawal of US combat forces from all bases and deployment points in the region,” indicating Tehran’s long-standing position against American military presence in West Asia.
Sanctions relief and compensation
The plan places strong emphasis on economic measures. It calls for “full payment of Iran’s damages according to estimates,” along with “the lifting of all primary and secondary sanctions and resolutions of the Board of Governors and the Security Council.”
It also seeks “the release of all Iranian assets and properties frozen abroad,” which have been a major point of contention for years.
Binding global guarantee
Finally, Iran has demanded that all these terms be formally recognised through “a binding Security Council resolution,” suggesting it wants international legal backing to ensure enforcement.
What this means
The 10-point plan reflects Iran’s broader push for security guarantees, economic relief and regional influence. The upcoming talks in Islamabad are expected to test how far both sides are willing to negotiate on these demands.
