Section 3. The Goods and Services Tax (Compensation to States) Bill, 2017, inter alia , provides for the following, namely:

3. The Goods and Services Tax (Compensation to States) Bill, 2017, inter alia , provides for the following, namely:— (a) to provide that the financial year 2015-16 shall be taken as the base year for the purpose of calculating compensation amount payable to States; (b) the revenue to be compensated shall consist of revenues from all taxes levied by the States which are now proposed to be subsumed under the goods and services tax, as audited by the Comptroller and Auditor General of India; (c) the projected nominal growth rate of revenue subsumed for a State during the transition period shall be fourteen per cent. per annum; (d) to provide that the compensation shall be released bi-monthly against the figures given by the Central accounting authorities provisionally and final adjustment shall be done after getting audited accounts of the year from the Comptroller and Auditor General of India; (e) to provide that in case of the eleven Special category States referred to in article 279A of the Constitution, the revenue foregone on account of exemption of taxes granted by States shall be counted towards the definition of Revenue for the base year 2015-16; (f) the revenues of States that were not credited to the Consolidated Fund of the States but were directly devolved to "mandi" or "municipalities" would also be included in the definition of 'revenue subsumed' if these were collected under the authority of entries 52, 54, 55 and 62 of List II of Seventh Schedule of the Constitution and were subsumed in the goods and services tax; (g) to generate resources to compensate States for five years for any loss of revenue suffered by them on account of implementation of goods and services tax, a cess shall be levied on such goods, as recommended by the Goods and Services Tax Council, over and above the goods and services tax on that item; (h) the proceeds of the goods and services tax compensation cess shall be credited to a non-lapsable Fund known as the Goods and Services Tax Compensation Fund in the Public Account and all amounts payable to the States as goods and services tax compensation shall be paid from the Goods and Services Tax Compensation Fund; and (i) any residual amount left in the Compensation Fund after five year compensation period shall be shared equally between the Centre and the States. Fifty per cent. of the amount remaining unutilised in the Goods and Services Tax Compensation Fund at the end of the transition period shall be transferred to the Consolidated Fund of India as the share of the Centre, and the balance fifty per cent. shall be distributed amongst the States and Union territories in the ratio of their total revenues from the State goods and services tax or the Union territory goods and services tax, as the case may be, in the last year of the transition period.