No decision was taken at the Good and Services Tax Council meeting to extend the compensation to states for their revenue loss after implementing the indirect tax in 2017, Union Finance Minister Nirmala Sitharaman said on Wednesday, PTI reported.

“A final decision is likely to be taken in the next GST council meeting in the first week of August,” Sitharaman said after the meeting in Chandigarh.

In July 2017, the Centre had said that the states will be compensated for any loss of revenue from the new tax for up to five years. That window expires on June 30.

Around 16 states have demanded that the compensation should be extended on account of the Covid-19 pandemic, according to the finance minister.

Some BJP-ruled states like Uttarakhand and the Union Territory of Pudducherry, too, have also asked Sitharaman for relief, according to CNBC-TV18. They said their budgets are are suffering.

“A few states today said that they would like the compensation to continue for some time,” Sitharaman said, according to PTI. “..Few other states said that yes it is a question of coming out of pandemic but they have to stand on their feet and not depend on compensation.”

No decision over tax on casinos, lottery

The GST Council on Wednesday also deferred its decision on levying a 28% tax on casinos, online gaming, horse racing and lottery, according to PTI.

Sitharaman said that a group of ministers headed by Meghalaya Chief Minister Conrad Sangma has been asked to consider stakeholders’s submissions regarding the matter. They have to submit a report by July 15.