Govt Notifies GST Compensation Cess Rules, 2017 [Read Notification]

GST Cess

The Central Government notified the Goods and Services Tax Compensation Cess Rules, 2017.

The Government, in order to compensate the loss of the manufacturing States under the new indirect tax regime, has introduced a new cess with the name “GST Compensation Cess” for first 5 years on some specified items.

The cess will be levied on Luxury items like high-end cars and demerit goods including tobacco, pan masala and aerated drinks for this period of 5 years.

As per the Notification, the Central Goods and Services Tax Rules, 2017 shall, mutatis mutandis, apply, subject to certain conditions. In rule 1, for the words and figures “Central Goods and Services Tax Rules, 2017”, the words and figures, “Goods and Services Tax Compensation Cess Rules, 2017” shall be substituted.

Further, rules 3 to 7 and 117 to 120 will not be applicable. The Notification is applicable w.e.f 1st July 2017.

Read the full text of the Notification below.

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