compensation cess

Hi,

Compensation cess is levied on interstate and intrastate transactions of goods and services to compensate the revenue losses occurred to the States because of the implementation of GST in the country.

The GST cess on an eligible product will be calculated according to the rate specified in the GST cess rate schedule and on the actual taxable value (transaction value) of the supply.

GST Cess would be applicable on both supply of goods or services that have been notified by the Central Government. Also, both intra-state supplies of goods or services and inter-state supplies of goods or services would attract GST cess. All taxable person under GST, except taxpayers registered under GST composition scheme are expected to collect and remit GST cess. The following goods will attract GST Cess :

• Pan Masala
• Tobacco and manufactured tobacco substitutes, including tobacco products
• Coal, briquettes, ovoids and similar solid fuels manufactured from coal, lignite, whether or not agglomerated, excluding jet, peat (including peat litter), whether or not agglomerated
• Aerated waters
• Motor cars and other motor vehicles principally designed for the transport of persons (other than motor vehicles for the transport of ten or more persons, including the driver), including station wagons and racing cars.
• Any other supplies as notified from time to time.

Compensation cess rates is attached in the file.