CESS-charged on goods not in notified goods list

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Cess is applicable on notified goods only. We are not dealing in notified goods.we are dealing in nonferrous scraps and electrical cables , which are not under list of notified goods. While filing of 3 B for july-22, as the balance in cash ledger was short we clicked to create challan option. we paid the amount as per challan. When we downloaded the challan receipt we came to know that some amount was charged as CESS.  As our item in not under notified goods how this time system has charged this in challan ?

Now how can we get it refunded, OR what are other ways to get it credited in our cash ledger ?

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Got it! Here’s what you need to know about cess charged on non-notified goods like nonferrous scraps and electrical cables under GST:

1. Is Cess applicable on non-notified goods?

  • No. Compensation Cess under GST is levied only on notified goods (like luxury cars, tobacco products, etc.).

  • If your goods are not in the notified list, cess should not be charged.

2. Why was cess charged?

  • Sometimes, system-generated challans may include cess automatically due to:

    • Input errors or mismatches.

    • Incorrect tax head selection during challan generation.

    • Technical glitches in GST portal.

3. How to resolve this?

Option A: Claim Refund of the Wrongly Paid Cess

  • File a refund claim on the GST portal for the excess cess amount paid.

  • You need to submit:

    • Challan details.

    • Proof of payment.

    • Explanation that cess was paid erroneously on non-notified goods.

  • Refund claims can take time, and the process needs proper documentation.

Option B: Adjust the Cess amount in your cash ledger for future GST payments

  • If refund seems difficult or delayed, you can adjust the excess cess amount paid against future GST liability under the cess head.

  • This means you use the excess cess credit to pay future cess liability (if any).

Option C: Contact GST Helpdesk

  • Raise a grievance/ticket with the GST helpdesk to clarify the cess charge.

  • Sometimes they can reverse or guide for manual adjustment.

4. How to avoid this in future?

  • Double-check tax heads while making challan.

  • Select correct tax heads to avoid incorrect cess levy.


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