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Section 18 of the Constitution (One Hundred and First Amendment) Act, 2016

From the IndiaAuditLens Law Library

GST›Constitution (One Hundred and First Amendment) Act, 2016

At a glance

Bars, duties and time limits

  • 18Parliament must, by law and on the GST Council’s recommendation, provide States compensation for GST implementation revenue loss for five years.

Section 18 requires Parliament to make a law providing compensation to States for revenue loss arising from GST implementation. The law must be based on the GST Council’s recommendation and cover a period of five years. The provision identifies the cause of the revenue loss, the legislative route and the duration of the compensation arrangement.[1]

Text

The text below is the section as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Act as published in the Gazette of India is the legal source.

Section 18, verbatim (show)

Section 18. Compensation to States for loss of revenue on account of introduction of goods and services tax.

Parliament shall, by law, on the recommendation of the Goods and Services Tax Council, provide for compensation to the States for loss of revenue arising on account of implementation of the goods and services tax for a period of five years.

Questions to answer on the file

Questions a reviewer answers from the engagement file, grouped by the part of the section they come from. They describe what the section asks; they do not decide it.

Constitutional compensation-law requirements 18

Questions to answer on the file6 questions
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Provisions connected to Section 18
ProvisionConnectionWords that tie them
Section 12this provision requires Section 12recommendation of the Goods and Services Tax Council

Circulars and notifications

No circular or notification in the CBIC repository is recorded as citing this section.

See also

References

  1. Central Board of Indirect Taxes and Customs. "Section 18. Compensation to States for loss of revenue on account of introduction of goods and services tax". Constitution (One Hundred and First Amendment) Act, 2016, CBIC tax information portal. Retrieved 17 September 2026.

External links