The government levies compensation cess on several sin and luxury goods such as tobacco, soft drinks and large cars, which is to be used compensate states that fail to increase collections by 14% annually. With the GST Council lowering tax rates and overall economic growth slowing down, collections have been hit.

from Times of India https://timesofindia.indiatimes.com/business/india-business/government-stares-at-rs-63000-crore-shortfall-in-gst-payout-to-states/articleshow/72946565.cms