GST Compensation Cess is taxed by the Goods and Services Tax Act 2017. To compensate for the loss of revenue for the implementation of GST this cess is levied. Since cess GST is attracted on intra-state supplies of goods and inter-state supplies goods. So let us understand under GST law compensation cess is applicable. I have already mentioned that under the Goods and Services Tax Act 2017 the Cess GST is applicable.
When cess is applicable in GST?
The cess applicability in GST can be on various items for the first 5 years, which means it is set to end by July 1, 2022. And the rate applicability of cess in GST varies from one product to another. I will mention the rates and items for which cess is applicable in GST.
| Goods | GST Compensation Cess |
Unmanufactured tobacco (with lime tube) – featuring a brand name |
65% |
Unmanufactured tobacco (without lime tube) – with a brand name |
71% |
Branded tobacco refusing |
61% |
Cheroots and Cigar |
21% or 4170 per thousand, whichever higher |
Cigarillos |
21% or Rs. 4170 per thousand, whichever is higher |
Cigarettes which has tobacco without filter cigarettes, of length not more than 65mm |
5% + 2076 per thousand |
Cigarettes which has tobacco besides filter cigarettes, of length more than 65mm and up to 75mm |
5% + 3668 per thousand |
Cigarettes of tobacco substitutes |
Rs.4006 per thousand |
Branded ‘hookah’ or ‘gutkha’ tobacco |
72% |
Chewing tobacco (without lime tube) |
160% |
Chewing tobacco (with lime tube) |
142% |
Pan masala (gutkha) along with tobacco |
204% |
All goods, excluding pan masala containing tobacco ‘gutkha’, with the brand name |
96% |
All goods, excluding pan masala containing tobacco ‘gutkha’, not bearing a brand name |
89% |
Coal, ovoids, briquettes, and similar solid fuels produced from lignite, coal, whether or not agglomerated, excluding jet, peat (including peat litter), whether or not agglomerated |
400 per tonne |
Aerated waters |
12% |
Motor vehicles for the transport of not more than 13 persons, besides the driver |
15% |
Motor vehicles, not including ambulances, three-wheelers and vehicles of engine capacity not exceeding 1200cc and of length not exceeding 4000 mm, with both spark-ignition internal combustion reciprocating piston engine and electric motor as motors for propulsion or with both compression-ignition internal combustion piston engine [diesel-or semi diesel] and electric motor as motors for propulsion |
15% |
Petrol, liquefied petroleum gas (LPG) or compressed natural gas (CNG) driven motor vehicles of engine capacity not exceeding 1200cc and of length not exceeding 4000mm. |
1% |
Diesel driven motor vehicles of engine capacity not exceeding 1500cc and of length not exceeding 4000mm. |
3% |
Motor vehicles of engine capacity not exceeding 1500 cc |
17% |
Motor vehicles of engine capacity exceeding 1500 cc other than motor vehicles specified against entry at S. No 52B |
20% |
Motor vehicles of engine capacity over 1500cc, well known as Sports Utility Vehicles (SUVs) which includes utility vehicles as well. |
22% |
I hope you know under GST law compensation cess is applicable on now.
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Authors Of The Question
When cess is applicable in GST?
Abhay
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1 Answers
2 Year
2022-01-31T19:13:01+00:00 2022-01-31T20:18:46+00:00Comment
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