India extends Applicability of compensation cess on vehicles, motor cycles etc till 31.03.2026

PDFPrint

NOTIFICATION
New Delhi, the 24th June, 2022
No. 1/2022–Compensation Cess

G.S.R. 468(E).—In exercise of the powers conferred by sub-section (2) of section 12 read with 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 rules, namely:-

Short title and commencement.-

1. (1)These rules may be called the Goods and Services Tax (Period of Levy and Collection of Cess) Rules, 2022.
(2) They shall come into force with effect from the 1st day of July, 2022.

Period for levy and collection of Cess.-

2. The period for levy and collection of cess under sub-section (1) of section 8 of the Goods and Services Tax (Compensation to States) Act, 2017 shall be upto the 31st March, 2026.

To read the notification CLICK HERE: https://egazette.nic.in/WriteReadData/2022/236790.pdf

Compensation cess was introduced to compensate the state for the loss of revenue if any due to introduction of GST and it was introduced for a period of 5 years. However, now government has extended the same to more 4 years which means government thinks that state government is still at a loss with introduction of GST?

Compensation cess is mainly applicable on luxury items and sins products.

Various products on which compensation cess is applicable includes tobacco, cigarettes, hookah, aerated water, high-end motorcycles, aircraft, yachts, and motor cars.

Connect with us on: LinkedIn, Telegram, Instagram, Facebook and Youtube for regular Updates.

PDFPrint