If the Centre does not extend the GST compensation from July this year, Maharashtra, which pays the maximum taxes, will lose R30,000 crore annually, a senior official of the state finance department has said.

The Goods and Services Tax (GST) Act guarantees states bi-monthly compensation for any loss of revenue in the first five years of its implementation. The shortfall is calculated assuming a 14 per cent annual growth in GST collections by the states over the base year of FY16. The five-year period ends in June 2022 as the uniform tax regime was rolled out from July 1, 2017.