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The Goods and Services Tax (Compensation to States) Act, 2017 Notification
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Body Notification No. 1/2017 Compensation Cess (Rate) F.No.354/117/2017-TRU Dated 28th June, 2017

In exercise of the powers conferred by sub-section (2) of 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 notifies the rate of cess as specified in column (4) of the Schedule appended to this notification, that shall be levied on the intra-State supplies or inter-State supplies of such goods, the description of which is specified in the corresponding entry in column (3) and falling under the tariff item, subheading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Schedule.

Schedule

S. No. Chapter / Heading / Sub-heading / Tariff item Description of Goods Rate of goods and services tax compensation cess
(1) (2) (3) (4)
1 2106 90 20 Pan Masala with declared retail sale price 0.32R per unit
1A. 2106 90 20 Pan Masala, other than goods covered under S. No. 1 above 60%
2 2202 10 10 Aerated waters 12%
2A Chapter 99 Leasing of motor vehicles purchased and leased prior to 1st July 2017 65 percent. of the rate of cess as applicable on supply of similar goods involving transfer of title in goods.

Note:- Nothing contained in this entry shall apply on or after 1st day of July, 2020".

3 2202 10 20 Lemonade 12%
4 2202 10 90 Others 12%
4A. 22029990 Caffeinated Beverages 12%
4B 2202 Carbonated Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice. 12%
5 2401 Unmanufactured tobacco (without lime tube) -bearing a brand name with declared retail sale price 0.36R per unit
5A. 2401 Unmanufactured tobacco (without lime tube)- bearing a brand name, other than goods covered under S. No. 5 above 71%
6 2401 Unmanufactured tobacco (with lime tube) - bearing a brand name with declared retail sale price 0.36R per unit
6A. 2401 Unmanufactured tobacco (with lime tube)- bearing a brand name, other than goods covered under S. No. 6 above 65%
7 2401 30 00 Tobacco refuse, bearing a brand name with declared retail sale price 0.32R per unit
7A. 2401 30 00 Tobacco refuse, bearing a brand name, other than goods covered under S. No. 7 above 61%
8 2402 10 10 Cigar and cheroots 21% or Rs. 4170 per thousand, whichever is higher
9 2402 10 20 Cigarillos 21% or Rs. 4170 per thousand, whichever is higher
10 2402 20 10 Cigarettes containing tobacco other than filter cigarettes, of length not exceeding 65 millimetres 5% + Rs. 2076 per thousand
11 2402 20 20 Cigarettes containing tobacco other than filter cigarettes, of length exceeding 65 millimetres but not exceeding 75 millimetres 5% + Rs. 3668 per thousand
12 2402 20 30 Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) not exceeding 65 millimetres 5%+ Rs. 2076 per thousand
13 2402 20 40 Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 65 millimetres but not exceeding 70 millimetres 5% + Rs. 2747 per thousand
14 2402 20 50 Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 70 millimetres but not exceeding 75 millimetres 5%+ Rs. 3668 per thousand
15 2402 20 90 Other cigarettes containing tobacco 36%+ Rs. 4170 per thousand
16 2402 90 10 Cigarettes of tobacco substitutes Rs.4006 per thousand
17 2402 90 20 Cigarillos of tobacco substitutes 12.5% or Rs. 4,006 per thousand whichever is higher
18 2402 90 90 Other 12.5% or Rs. 4,006 per thousand whichever is higher
19 2403 11 10 'Hookah' or 'gudaku' tobacco bearing a brand name with declared retail sale price 0.36R per unit
19A 2403 11 10 'Hookah' or 'gudaku' tobacco, bearing a brand name, other than goods covered under S. No. 19 above 72%
20 2403 11 10 Tobacco used for smoking 'hookah' or 'chilam' commonly known as 'hookah' tobacco or 'gudaku' not bearing a brand name with declared retail sale price 0.12R per unit
20A. 2403 11 10 Tobacco used for smoking 'hookah' or 'chilam' commonly known as 'hookah' tobacco or 'gudaku', not bearing a brand name, other than goods covered under S. No. 20 above 17%
21 2403 11 90 Other water pipe smoking tobacco not bearing a brand name with declared retail sale price 0.08R per unit
21A 2403 11 90 Other water pipe smoking tobacco, not bearing a brand name, other than goods covered under S. No. 21 above 11%
22 2403 19 10 Smoking mixtures for pipes and cigarettes, with declared retail sale price 0.69R per unit
22A. 2403 19 10 Smoking mixtures for pipes and cigarettes, other than goods covered under S. No. 22 above 290%
23 2403 19 90 Other smoking tobacco bearing a brand name with declared retail sale price 0.28R per unit
23A. 2403 19 90 Other smoking tobacco bearing a brand name, other than goods covered under S. No. 23 above 49%
24 2403 19 90 Other smoking tobacco not bearing a brand name with declared retail sale price 0.08R per unit
24A. 2403 19 90 Other smoking tobacco, not bearing a brand name, other than goods covered under S. No. 24 above 11%
24B. 2403 91 00 "Homogenised" or "reconstituted" tobacco, bearing a brand name with declared retail sale price 0.36R per unit
24C. 2403 91 00 "Homogenised" or "reconstituted" tobacco, bearing a brand name, other goods covered under S. No. 24 B above 72%
25 2404 11 00 "Homogenised" or "reconstituted" tobacco, bearing a brand name 72%
26 2403 99 10 Chewing tobacco (without lime tube), with declared retail sale price 0.56R per unit
26A. 2403 99 10 Chewing tobacco (without lime tube), other than goods covered under S. No. 26 above 160%
27 2403 99 10 Chewing tobacco (with lime tube), with declared retail sale price 0.56R per unit
27A. 2403 99 10 Chewing tobacco (with lime tube), other than goods covered under S. No. 27 above 142%
28 2403 99 10 Filter khaini, with declared retail sale price 0.56R per unit
28A. 2403 99 10 Filter khaini, other than goods covered under S. No. 28 above 160%
29 2403 99 20 Preparations containing chewing tobacco, with declared retail sale price 0.36R per unit
29A. 2403 99 20 Preparations containing chewing tobacco, other than goods covered under S. No. 29 above 72%
30 2403 99 30 Jarda scented tobacco, with declared retail sale price 0.56R per unit
30A. 2403 99 30 Jarda scented tobacco, other than goods covered under S. No. 30 above 160%
31 2403 99 40 Snuff, with declared retail sale price 0.36R per unit
31A 2403 99 40 Snuff, other than goods covered under S. No. 31 above 72%
32 2403 99 50 Preparations containing snuff, with declared retail sale price 0.36R per unit
32A. 2403 99 50 Preparations containing snuff, other than goods covered under S. No. 32 above 72%
33 2403 99 60 Tobacco extracts and essence bearing a brand name with declared retail sale price 0.36R per unit
33A. 2403 99 60 Tobacco extracts and essence, bearing a brand name, other than good covered under S. No. 33 above 72%
34 2403 99 60 Tobacco extracts and essence not bearing a brand name with declared retail sale price 0.36R per unit
34A. 2403 99 60 Tobacco extracts and essence, not bearing a brand name, other than goods covered under S. No. 34 above 65%
35 2403 99 70 Cut tobacco, with declared retail sale price 0.14R per unit
35A. 2403 99 70 Cut tobacco, other than goods covered under S. No. 35 above 20%
36 2403 99 90 Pan masala containing tobacco 'Gutkha' with declared retail sale price 0.61R per unit
36A. 2403 99 90 Pan masala containing tobacco 'Gutkha', other than goods covered under S. No. 36 above 204%
36B. 2403 99 90 All goods, other than pan masala containing tobacco 'gutkha', bearing a brand name, with declared retail sale price 0.43R
36C. 2403 99 90 All goods, other than pan masala containing tobacco 'gutkha', bearing a brand name, other than good covered under S. No. 36B above 96%
36D. 2403 99 90 All goods, other than pan masala containing tobacco 'gutkha', not bearing a brand name, with declared retail sale price 0.43R
36E. 2403 99 90 All goods, other than pan masala containing tobacco 'gutkha', not bearing a brand name, other than goods covered under S. No. 36D above 89%
37 2404 11 00, 2404 19 00 All goods, other than pan masala containing tobacco 'gutkha', bearing a brand name 96%
38 2404 11 00, 2404 19 00 All goods, other than pan masala containing tobacco 'gutkha', not bearing a brand name 89%
39 2701 Coal; briquettes, ovoids and similar solid fuels manufactured from coal. Rs.400 per tonne
40 2702 Lignite, whether or not agglomerated, excluding jet Rs.400 per tonne
41 2703 Peat (including peat litter), whether or not agglomerated Rs.400 per tonne
41A 27 Coal rejects supplied to a coal washery or by a coal washery, arising out of coal on which compensation cess has been paid and input tax credit thereof has not been availed by any person NIL
42 8702 10, 8702 20, 8702 30, 8702 90 Motor vehicles for the transport of not more than 13 persons, including the driver, other than the vehicles of the description mentioned in S. No. 50 and 51 15%
42A. 87 All old and used motor vehicles

Explanation: Nothing contained in this entry shall apply if the supplier of such goods has availed input tax credit as defined in clause (63) of section 2 of the Central Goods and Services Tax Act, 2017, CENVAT credit as defined in CENVAT Credit Rules, 2004, or the input tax credit of Value Added Tax or any other taxes paid on such vehicles.

NIL
42B 87 Fuel Cell Motor Vehicles NIL
43 8702 or 8703 Motor vehicles cleared as ambulances duly fitted with all the fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such motor vehicles NIL
44 8703 10 10, 8703 80 Electrically operated vehicles, including three wheeled electric motor vehicles. NIL
45 8703 Three wheeled vehicles NIL
46 8703 Following motor vehicles of length not exceeding 4000 mm, namely:-

    (a) Petrol, Liquefied petroleum gases (LPG) or compressed natural gas (CNG) driven vehicles of engine capacity not exceeding 1200 cc; and

    (b) Diesel driven vehicles of engine capacity not exceeding 1500 cc

for persons with orthopedic physical disability, subject to the condition that an officer not below the rank of Deputy Secretary to the Government of India in the Department of Heavy Industries certifies that the said goods shall be used by the persons with orthopedic physical disability in accordance with the guidelines issued by the said Department

NIL
47

8703 40, 8703 60 Following Vehicles, with both spark-ignition internal combustion reciprocating piston engine and electric motor as motors for propulsion;  
(a) Motor vehicles cleared as ambulances duly fitted with all the fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such motor vehicles NIL
(b) Three wheeled vehicles NIL
(c) Motor vehicles of engine capacity not exceeding 1200cc and of length not exceeding 4000 mm NIL
(d) Motor vehicles other than those mentioned at (a), (b) and (c) above. 15%

Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under.  
48

8703 50, 8703 70 Following Vehicles, with both compression-ignition internal combustion piston engine [diesel-or semi diesel] and electric motor as motors for propulsion;  
(a) Motor vehicles cleared as ambulances duly fitted with all the fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such motor vehicles NIL
(b) Three wheeled vehicles NIL
(c) Motor vehicles of engine capacity not exceeding 1500 cc and of length not exceeding 4000 mm NIL
(d) Motor vehicles other than those mentioned at (a), (b) and (c) above. 15%
Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under.  
49 8703 Hydrogen vehicles based on fuel cell tech and of length not exceeding 4000 mm. Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under. NIL
50 8702, 8703 21 or 8703 22 Petrol, Liquefied petroleum gases (LPG) or compressed natural gas (CNG) driven motor vehicles of engine capacity not exceeding 1200cc and of length not exceeding 4000 mm. Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under. 1%
51 8702, 8703 31 Diesel driven motor vehicles of engine capacity not exceeding 1500 cc and of length not exceeding 4000 mm. Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under. 3%
52 8703 Motor vehicles of engine capacity not exceeding 1500 cc 17%
52A 8703 Motor vehicles of engine capacity exceeding 1500 cc other than motor vehicles specified against entry at S. No 52B 20%
52B 8703 Motor vehicles known as Utility Vehicles, by whatever name called including Sports Utility Vehicles (SUV), Multi Utility Vehicles (MUV), Multi-purpose vehicles (MPV) or Cross-Over Utility Vehicles (XUV), with engine capacity exceeding 1500 cc ; Length exceeding 4000 mm and Ground Clearance of 170 mm and above.

Explanation: For the purpose of this entry, the Ground Clearance means ground clearance in unladen condition.

22%
53 8711 Motorcycles of engine capacity exceeding 350 cc. 3%
54 8802 or 8806 Other aircraft (for example, helicopters, aeroplanes), for personal use. 3%
55 8903 Yacht and other vessels for pleasure or sports 3%
56 Any chapter All goods other than those mentioned at S. Nos. 1 to 55 above Nil

Explanation.-

(1) In this Schedule, "tariff item", "heading", "sub-heading" and "Chapter" shall mean respectively a tariff item, heading, sub-heading and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).

(2) The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification.

(3) For the purposes of this notification, the phrase "brand name" means brand name or trade name, whether registered or not, that is to say, a name or a mark, such as symbol, monogram, label, signature or invented word or writing which is used in relation to such specified goods for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified goods and some person using such name or mark with or without any indication of the identity of that person.

(4) For the purposes of this notification, "R" appearing in column (4) means "retail sale price" as provided in the Schedule to the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017)";

"Illustration: Calculation of goods and services tax compensation cess on Pan Masala (S. No. 1 in the Schedule above):

    Rate of goods and services tax compensation cess = 0.32R per unit;

    If retail sale price of unit (pouch) of Pan Masala = Rs. 10;

    goods and services tax compensation cess leviable = 0.32R = 0.32*10 = Rs. 3.2 per unit (pouch).

    (5) For the purposes of this notification, the words "declared retail sale price", with respect to the goods specified in column (3) of the Schedule above, shall mean the retail sale price of such goods which are required to be declared in compliance with the provisions of the Legal Metrology Act, 2009 (1 of 2010) or the rules made thereunder or under any other law for the time being in force

2. This notification shall come into force with effect from the 1st day of July, 2017.

(Mohit Tewari)

Under Secretary to the Government of India