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GST Compensation

Latest Articles


49th GST Council Meeting: From Compensation Cess to Rate Rationalization

Goods and Services Tax : The 49th GST Council Meeting took decisions on GST Compensation, Taxation, and Special Composition Scheme. Read an overview of the...

February 20, 2023 7122 Views 0 comment Print

Extension of GST Compensation Cess levy till 31.03.2026

Goods and Services Tax : Government extends GST Compensation Cess levy till 31.03.2026. Learn about the implications and new rules in this important move....

June 25, 2022 2109 Views 0 comment Print

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 Backg...

December 30, 2021 2445 Views 0 comment Print

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 (Ra...

October 2, 2021 9771 Views 0 comment Print

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. Notification...

October 2, 2021 34194 Views 1 comment Print


Latest News


States requested for extension of payment of GST compensation Cess

Goods and Services Tax : Few States have requested for extension of payment of GST compensation beyond transition period of five years. As per Section 18 o...

December 22, 2022 1188 Views 0 comment Print

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 secti...

July 20, 2022 1386 Views 0 comment Print

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 a...

June 1, 2022 849 Views 0 comment Print

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 releas...

April 29, 2022 1017 Views 0 comment Print

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 ...

April 7, 2022 1698 Views 0 comment Print


Latest Notifications


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

Custom Duty : Amendment to Notification No.52/2003-Customs dated 31.03.2003 for extending exemption from IGST and compensation cess to EOUs on i...

March 30, 2021 2070 Views 0 comment Print


GOI releases balance amount of ₹ 44,000 crore to States & UTs of GST compensation

October 28, 2021 537 Views 0 comment Print

Government of India releases balance amount of ₹ 44,000 crore to States and UTs (with Legislature) under the back-to-back loan facility in-lieu of GST compensation The Ministry of Finance has released ₹44,000 crore today to the States and UTs with Legislature under the back-to-back loan facility in lieu of GST Compensation. After taking into account […]

GOI releases ₹ 40,000 crore to States/ UTs in-lieu of GST compensation shortfall

October 7, 2021 495 Views 0 comment Print

Ministry of Finance today released an amount of ₹40,000 crore to the States and UTs with Legislature under the back-to-back loan facility to meet the shortfall in GST Compensation.  Earlier on 15th July, 2021 an amount of ₹75,000 crore was released to the States & UTs with legislature.

Industry Wise analysis of GST Rate Notifications applicable from 01.10.2021

October 2, 2021 9771 Views 0 comment Print

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, maintenance, renovation, or alteration of a building owned by an […]

Exhaustive Analysis of GST Notifications issued by CBIC on 30.09.2021

October 2, 2021 34194 Views 1 comment Print

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 on Carbonated Beverages […]

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

September 30, 2021 32127 Views 2 comments Print

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-Compensation Cess (Rate) New Delhi, the 30th September, 2021 G.S.R. 710(E). – In exercise of the […]

Centre borrows again to pay GST Compensation to States: Critical Analysis

July 29, 2021 663 Views 0 comment Print

1.0 Brief Background The GST compensation cess is levied under Section 8 of the GST (Compensation to States) Act, 2017 to compensate the States for any loss of revenue arising on account of implementation of GST for five years. The GST compensation cess is transferred into a non-lapsable Fund known as GST Compensation Fund which […]

₹ 75,000 crore released to States & UTs with Legislature as GST Compensation shortfall

July 15, 2021 399 Views 0 comment Print

Ministry of Finance has released today ₹75,000 crore to the States and UTs with Legislature under the back-to-back loan facility in lieu of GST Compensation.  This release is in addition to normal GST compensation being released every 2 months out of actual cess collection.

GST Compensation Cess on Coal and Coal rejects

May 25, 2021 13557 Views 0 comment Print

In re Parse Kente Collieries Limited (GST AAR Chhattisgarh) i. Compensation Cess is leviable on the total quantity of raw coal raised/mined and not only on the quantity of washed coal. ii. Coal rejects supplied by a Coal Washery arising out of raw coal raised / mined, will attract NIL rate of Compensation Cess, only […]

GST Compensation Cess

May 1, 2021 52572 Views 0 comment Print

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 […]

Centre releases GST Compensation & IGST ad-hoc settlement amount to States/UTs

March 31, 2021 2040 Views 0 comment Print

Centre releases Rs. 30,000 crore as GST Compensation as well as Rs. 28,000 crore as IGST ad-hoc settlement to the States/UTs. The total amount of compensation released so far for the year 2020-21 is Rs. 70,000 crore. As per the decision of GST Council, back to back loan of Rs. 1,10,208 crore has also been […]