Goods and Services Tax : The case examines whether stranded compensation cess credit due to GST reform must be refunded or lapsed, impacting working capita...
Goods and Services Tax : Understand implications of extension of GST Compensation Cess period till 2026 and its impact on state revenues. Analyze distribut...
Goods and Services Tax : The 49th GST Council Meeting took decisions on GST Compensation, Taxation, and Special Composition Scheme. Read an overview of the...
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....
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...
Goods and Services Tax : The Centre has released all provisional GST compensation for FY 2017-22, with Arunachal Pradesh and Manipur awaiting AG-certified ...
Goods and Services Tax : Explains that GST compensation ended in June 2022 because the Constitution restricted it to a five-year period. The key takeaway i...
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...
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...
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...
Goods and Services Tax : Bombay High Court ruled that a manufacturer can claim a refund of compensation cess on raw materials used for goods that are later...
Goods and Services Tax : Goods which are subject to nil rate of cess would be construed as exempt supplies for purposes of formula prescribed Rule 89 (4) o...
Goods and Services Tax : In re Parse Kente Collieries Limited (GST AAR Chhattisgarh) i. Compensation Cess is leviable on the total quantity of raw coal rai...
Goods and Services Tax : G. Sundarrajan Vs Union of India (Madras High Court) The issue under consideration is whether compliance of Goods and Services Tax...
Goods and Services Tax : The notification replaces cess rates with “Nil” across extensive Schedule entries. The key takeaway is the effective withdrawa...
Goods and Services Tax : The Ministry of Finance has reduced the Compensation Cess rate to Nil for several items, effective September 22, 2025, per a new n...
Goods and Services Tax : CBIC exempt Compensation cess on supply of aerated beverages and energy drinks to authorised customers by Unit Run Canteens under ...
Custom Duty : Read Notification No. 27/2024-Customs dated 12th July, 2024, exempting SEZ imports from CGST compensation cess under Customs Tarif...
Goods and Services Tax : CBIC notifies rate changes in Compensation Cess for Pan Masala and Tobacco Products as per 50th GST Council Meeting vide Notificat...
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.
₹ 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 […]
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 admissible GST compensation to the States who have not submitted the AG’s certified revenue figures.
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
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, the States are being compensated for any shortfall against their protected revenue. The year-wise details of GST compensation released to States/ UTs is as per Annexure.
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 the intra-State […]
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 28th December, 2021 Notification No. 2/2021-Compensation Cess (Rate) G.S.R. 901(E).— In exercise of the powers […]
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 brackets ‘Tamil Nadu Sugar Factories Control Act, 1949 […]
Central Government has released GST Compensation of Rs. 17,000 crore to States today. The total amount of compensation released to the States/UTs so far including the aforesaid amount during the year 2021-22 is Rs. 60,000 crore. As per the decision of GST Council, back to back loan of Rs.1.59 lakh crore has already been released in lieu of shortfall in release of GST Compensation during the current financial year
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 […]
