During Question Hour, Tamil Nadu MP D. Ravikumar raised concerns about the continuation of GST compensation cess despite payments to states having ceased. In her response, Finance Minister Nirmala Sitharaman clarified that the ongoing GST compensation cess is being utilized to repay loans borrowed during the COVID-19 pandemic to compensate states. Although the GST compensation cess officially ended in June 2022, it has been extended until March 2026 based on a collective decision by the GST Council. This extension is essential to cover the borrowed funds used to maintain compensation payments to states during the pandemic. Listen in to know more.