Seeks to amend Notification No. 1/2017- Compensation Cess (Rate) dated 28.06.2017.
The Indian Ministry of Finance has issued a new notification that amends the Goods and Services Tax (Compensation to States) Act, 2017. This amendment, which is effective from September 22, 2025, modifies the Compensation Cess rates for a number of items listed in the official schedule. Specifically, the notification substitutes the existing cess rates for serial numbers 2- Aerated waters, 3 – Lemonade, 4, 4A, 4B, 39, 40, 41, 42, 47, 48, 50, 51, 52, 52A, 52B, 53, 54, and 55 with “Nil.” This change means that no compensation cess will be applied to these particular goods. The decision was made by the Central Government based on the recommendations of the GST Council.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 02/2025 – Compensation Cess (Rate) | Dated: 17th September, 2025
G.S.R. 659(E).-In exercise of the powers conferred by sub-section (2) of section 8 of the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.1/2017-Compensation Cess (Rate), dated the 28th day of June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 720(E), dated the 28th June, 2017, namely :-
In the said notification,
in the SCHEDULE, —
i. against S. No. 2, for the entry in column (4), the entry “Nil” shall be substituted;
ii. against S. No. 3, for the entry in column (4), the entry “Nil” shall be substituted;
iii. against S. No. 4, for the entry in column (4), the entry “Nil” shall be substituted;
iv. against S. No. 4A, for the entry in column (4), the entry “Nil” shall be substituted;
v. against S. No. 4B, for the entry in column (4), the entry “Nil” shall be substituted;
vi. against S. No. 39, for the entry in column (4), the entry “Nil” shall be substituted;
vii. against S. No. 40, for the entry in column (4), the entry “Nil” shall be substituted;
viii. against S. No. 41, for the entry in column (4), the entry “Nil” shall be substituted;
ix. against S. No. 42, for the entry in column (4), the entry “Nil” shall be substituted;
x. against S. No. 47, for the entries in column (4), the entry “Nil” shall be substituted;
xi. against S. No. 48, for the entries in column (4), the entry “Nil” shall be substituted;
xii. against S. No. 50, for the entries in column (4), the entry “Nil” shall be substituted;
xiii. against S. No. 51, for the entries in column (4), the entry “Nil” shall be substituted;
xiv. against S. No. 52, for the entries in column (4), the entry “Nil” shall be substituted;
xv. against S. No. 52A, for the entries in column (4), the entry “Nil” shall be substituted;
xvi. against S. No. 52B, for the entries in column (4), the entry “Nil” shall be substituted;
xvii. against S. No. 53, for the entries in column (4), the entry “Nil” shall be substituted;
xviii. against S. No. 54, for the entries in column (4), the entry “Nil” shall be substituted;
xix. against S. No. 55, for the entries in column (4), the entry “Nil” shall be substituted.
2. This notification shall come into force on 22nd day of September, 2025.
[F. No. 190341/188/2025-TRU]
(Dheeraj Sharma)
Under Secretary
Note: – The principal notification No.1/2017-Compensation Cess (Rate), dated the 28th day of June, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 720(E), dated the 28th day of June, 2017, and was last amended vide notification No. 3/2023-Compensation Cess (Rate), dated the 26th July, 2023, published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i), vide number G.S.R. 553(E), dated the 26th July, 2023.
