GST Compensation

Extension of GST Compensation Cess levy till 31.03.2026

Goods and Services Tax - The Government in an important and timely move has decided to extend the levy and collection of GST Compensation Cess up to 31st March 2026, which was supposed to expire on 30-06-2022. In this regard a Notification No: 01/2022 – Comp.Cess, dt: 24-06-2022 has been issued in terms of the powers vested under sub-section (2) […]...

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Changes in Compensation Cess Rate on supply of certain goods from 01.01.2022

Goods and Services Tax - Changes in Compensation Cess Rate Notification w.r.t. supply of certain goods from January 01, 2022 to align it with HS 2022 Background: Earlier, the CBIC issued Notification No. 1/2017-Compensation Cess (Rate) dated June 28, 2017 (Compensation Cess Rate Notification) in order to notify the rate of GST compensation cess to be levied on th...

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Industry Wise analysis of GST Rate Notifications applicable from 01.10.2021

Goods and Services Tax - INDUSTRY WISE ANALYSIS OF GST RATE NOTIFICATIONS APPLICABLE FROM 1ST OCTOBER 2021 Notification No. 06/2021 – Central Tax (Rate)  1. Works Contract Service for Charitable Organizations – GST @12% would be charged on Works Contract by way of construction, erection, commissioning, installation, completion, fitting out, repair, ...

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Exhaustive Analysis of GST Notifications issued by CBIC on 30.09.2021

Goods and Services Tax - To give effect to Recommendation of 45th GST Council meeting CBIC has issued 22 GST Rate Notifications on 30.09.2021. Notifications amends GST Rate on Services and Goods, Exempts certain services and Goods from GST, notified RCM applicability on supply of mentha oil by unregistered person to registered person and imposed Compensation Cess...

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GST Compensation Cess

Goods and Services Tax - GST Compensation Cess is levied by the Goods and Services Tax (Compensation to States) Act 2017. The object of levying this cess is to compensate the states for the loss of revenue arising due to the implementation of GST on 1st July 2017 for a period of five years or such period as recommended by […]...

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Details of GST Compensation released to States/UTs for a period of 5 years

Goods and Services Tax - GST compensation to States for loss of revenue arising on account of implementation of GST for a period of five years As per section 18 of the Constitution (One Hundred and First Amendment) Act, 2016, Parliament shall, by law, on the recommendation of the Goods and Services Tax Council, provide for compensation to the States […]...

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Centre Clears Entire GST Compensation Due till 31ST May, 2022

Goods and Services Tax - Goods and Services Tax was introduced in the country w.e.f. 1st July, 2017 and States were assured for compensation for loss of any revenue arising on account of implementation of GST as per the provisions of the GST (Compensation to States) Act, 2017 for a period of five years....

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Status Note on GST compensation released to States/UTs

Goods and Services Tax - ₹ 2.78 lakh crore of compensation released to States for the year 2020-21 itself ; nothing is pending for the year Centre released ₹ 7.35 lakh crore and compensation of ₹78,704 crore pending only for the year 2021-22 At the time of introduction of GST, the Constitution amendment provided that the Parliament, by law shall […]...

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No Discrepancies in payment of GST to States

Goods and Services Tax - Final GST Compensation due to States is calculated on the basis of the revenue figures certified by the Accountant General of the concerned State. Many States including Jharkhand, Bihar and Maharashtra have not submitted the AG’s certified revenue figures since implementation of GST and therefore, Centre released only provisional admiss...

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Many State Govts requested for extension of GST compensation payment period

Goods and Services Tax - Whether the Government has received proposals from the State Governments requesting for extension of payment of Goods and Services Tax(GST) compensation to the States for another five years keeping in view the difficulties caused by Covid-19 Pandemic...

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Goods subject to nil Cess rate would be construed as exempt supplies to calculate adjusted total turnover

Principle Commissioner, CGST & CX Vs. Joint Commissioner (Appeal) (Calcutta High Court) - Goods which are subject to nil rate of cess would be construed as exempt supplies for purposes of formula prescribed Rule 89 (4) of CGST Rules...

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Compliance of GST (Compensation to States) Act, 2017 is Not Mandatory

G. Sundarrajan Vs Union of India (Madras High Court) - G. Sundarrajan Vs Union of India (Madras High Court) The issue under consideration is whether compliance of Goods and Services Tax (Compensation to States) Act, 2017 is mandatory? High Court states that, the mere employment of the word ‘shall’ in Section 7(1) of the Goods and Services Ta...

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GST Compensation Cess levy extended till 31/03/2026

Notification No. 1/2022–Compensation Cess - (24/06/2022) - As expected Govt extended GST Compensation Cess levy extended till 31/03/2026 which was coming to an end on 30th June 2022. Goods and Services Tax (Period of Levy and Collection of Cess) Rules, 2022 | Notification No. 1/2022–Compensation Cess | Dated: 24th June, 2022. MINISTRY OF FINANCE (Departme...

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Amendment in Rates of GST compensation cess wef 01.01.2022

Notification No. 2/2021-Compensation Cess (Rate), [G.S.R. 901(E)] - (28/12/2021) - Amendment in Rates of GST compensation cess under GST (Compensation to States) Act, 2017 vide Notification No. 2/2021-Compensation Cess (Rate), Dated: 28.12.2021 by amending Notification No 1/2017- Compensation Cess (Rate) dated 28.06.2017. MINISTRY OF FINANCE (Department of Revenue) New Delhi, the ...

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Notification No. 1/2021–GST Compensation, Dated: 16.12.2021

Notification No. 1/2021–Goods and Services Tax Compensation [G.S.R. 859(E)] - (16/12/2021) - In the Notification No. 1/2018 (Goods and Service Tax Compensation) dated 14th November, 2018 in the Table, under the heading Tamil Nadu, against serial number 99 in column (3), for the words, brackets and figures ‘Tamil Nadu Sugar Cane Cess (Validation) Act, 1963’ the words, figures and...

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GST Compensation Cess on Carbonated Beverages of Fruit Drink /Juice imposed

Notification No. 01/2021-Compensation Cess (Rate) [G.S.R. 710(E).] - (30/09/2021) - CBIC imposes 12% Compensation Cess under GST on Carbonated Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice vide Notification No. 01/2021-Compensation Cess (Rate) Dated: 30thSeptember, 2021. GOVERNMENT OF INDIA MINISTRY OF FINANCE (Department of Revenue) Notification No. 01/2021-Com...

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CBIC extends exemption from IGST & compensation cess to EOUs on imports

Notification No. 19/2021-Customs [G.S.R. 224(E).] - (30/03/2021) - Amendment to Notification No.52/2003-Customs dated 31.03.2003 for extending exemption from IGST and compensation cess to EOUs on imports till 31.03.2022 vide Notification No. 19/2021-Customs dated 30th March, 2021. MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF INDIRECT TAXES AND CUST...

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Recent Posts in "GST Compensation"

Details of GST Compensation released to States/UTs for a period of 5 years

GST compensation to States for loss of revenue arising on account of implementation of GST for a period of five years As per section 18 of the Constitution (One Hundred and First Amendment) Act, 2016, Parliament shall, by law, on the recommendation of the Goods and Services Tax Council, provide for compensation to the States […]...

Read More

Extension of GST Compensation Cess levy till 31.03.2026

The Government in an important and timely move has decided to extend the levy and collection of GST Compensation Cess up to 31st March 2026, which was supposed to expire on 30-06-2022. In this regard a Notification No: 01/2022 – Comp.Cess, dt: 24-06-2022 has been issued in terms of the powers vested under sub-section (2) […]...

Read More

GST Compensation Cess levy extended till 31/03/2026

Notification No. 1/2022–Compensation Cess 24/06/2022

As expected Govt extended GST Compensation Cess levy extended till 31/03/2026 which was coming to an end on 30th June 2022. Goods and Services Tax (Period of Levy and Collection of Cess) Rules, 2022 | Notification No. 1/2022–Compensation Cess | Dated: 24th June, 2022. MINISTRY OF FINANCE (Department of Revenue) New Delhi Notification No...

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Goods subject to nil Cess rate would be construed as exempt supplies to calculate adjusted total turnover

Principle Commissioner, CGST & CX Vs. Joint Commissioner (Appeal) (Calcutta High Court)

Goods which are subject to nil rate of cess would be construed as exempt supplies for purposes of formula prescribed Rule 89 (4) of CGST Rules...

Read More

Centre Clears Entire GST Compensation Due till 31ST May, 2022

Goods and Services Tax was introduced in the country w.e.f. 1st July, 2017 and States were assured for compensation for loss of any revenue arising on account of implementation of GST as per the provisions of the GST (Compensation to States) Act, 2017 for a period of five years....

Read More

Status Note on GST compensation released to States/UTs

₹ 2.78 lakh crore of compensation released to States for the year 2020-21 itself ; nothing is pending for the year Centre released ₹ 7.35 lakh crore and compensation of ₹78,704 crore pending only for the year 2021-22 At the time of introduction of GST, the Constitution amendment provided that the Parliament, by law shall […]...

Read More

No Discrepancies in payment of GST to States

Final GST Compensation due to States is calculated on the basis of the revenue figures certified by the Accountant General of the concerned State. Many States including Jharkhand, Bihar and Maharashtra have not submitted the AG’s certified revenue figures since implementation of GST and therefore, Centre released only provisional admiss...

Read More

Many State Govts requested for extension of GST compensation payment period

Whether the Government has received proposals from the State Governments requesting for extension of payment of Goods and Services Tax(GST) compensation to the States for another five years keeping in view the difficulties caused by Covid-19 Pandemic...

Read More

State and year-wise details of GST compensation given from 2017

As per Section 7 of the GST (Compensation to States) Act, 2017, the States are required to be compensated for loss of revenue due to implementation of GST (w.e.f. 01.07.2017) for 5 years’ period. During transition period, the States’ revenues are protected at 14% growth rate per annum over the base year revenue (2015-16). Accordingly,...

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Changes in Compensation Cess Rate on supply of certain goods from 01.01.2022

Changes in Compensation Cess Rate Notification w.r.t. supply of certain goods from January 01, 2022 to align it with HS 2022 Background: Earlier, the CBIC issued Notification No. 1/2017-Compensation Cess (Rate) dated June 28, 2017 (Compensation Cess Rate Notification) in order to notify the rate of GST compensation cess to be levied on th...

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