The correct answer is: B. Central Government from GST compensation fund of India
The GST compensation fund is a corpus of money that is created by the central government to compensate states for any revenue loss they may incur due to the implementation of the Goods and Services Tax (GST). The fund is created by collecting a cess on certain goods and services, and the money from the cess is then transferred to the states on a monthly basis.
The GST compensation fund was created to ensure that states do not face any financial hardship due to the implementation of the GST. The fund is expected to be in operation for a period of five years, after which it will be reviewed.
The GST compensation fund is a significant step towards ensuring the success of the GST. The fund will help to ensure that states are not financially disadvantaged by the implementation of the GST, and it will also help to promote economic growth and development across the country.
The other options are incorrect because:
- Option A is incorrect because the central government does not pay compensation to states from the consolidated fund of India. The consolidated fund of India is a fund that is used to meet the expenditure of the central government, and it is not used to compensate states for revenue loss.
- Option C is incorrect because the central government does not pay compensation to states directly from the collection of compensation cess. The compensation cess is a cess that is collected on certain goods and services, and the money from the cess is transferred to the GST compensation fund. The central government does not pay compensation to states directly from the collection of the compensation cess.
- Option D is incorrect because the GST Council is not responsible for paying compensation to states. The GST Council is a body that is responsible for making recommendations on matters related to the GST, and it is not responsible for paying compensation to states.