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GST Compensation Cess Not Payable on Intra-State Supply of Second Hand Goods under RCM [Read Notification]

GST Cess

The Central Government last day notified that intra-State supply of second hand goods for which reverse charge is applicable are exempted from the levy of GST Compensation Cess.

GST Compensation Cess is levied on certain goods to compensate the loss of the manufacturing States under the current Goods and Services Tax regime for first 5 years on some specified items.

The present Notification seeks to exempt intra-State supplies of second hand goods received by a registered person, dealing in buying and selling of second hand goods and who pays the goods and services tax compensation cess on the value of outward supply of such second hand goods, as determined under sub-rule (5) of rule 32 of the Central Goods and Services Tax Rules, 2017, from any supplier, who is not registered, from the whole of the goods and services tax compensation cess leviable thereon under section 8 of the Goods and Services Tax (Compensation to States) Act, read with sub-section (4) of Section 9 of the Central Goods and Services Tax Act.

Read the full text of the Notification below.

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