{"id":26513,"date":"2019-11-11T17:16:51","date_gmt":"2019-11-11T11:46:51","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=26513"},"modified":"2020-11-16T12:43:59","modified_gmt":"2020-11-16T07:13:59","slug":"what-is-cess-on-gst","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/what-is-cess-on-gst\/","title":{"rendered":"What is Cess on GST? – Applicability and Rates"},"content":{"rendered":"

On 18th February 2017<\/strong>, the GST Council in its 10th meeting<\/strong> approved the “GST Compensation to the state to provide compensation to the States for loss of revenue due to implementation of GST<\/strong><\/em>in India”<\/em><\/strong>.<\/em> GST Cess is levied on intra-state supply of goods or services and inter-state supply of goods or services. GST Cess is a compensation Cess levied under Section 8 of The Goods and Services Tax (Compensation to State) Act, 2017<\/strong>.[1]<\/a><\/sup> As GST Cess is a tax based on consumption, thus the state in which the consumption of goods and supply happen would be eligible.<\/p>\n\n\n\n

What was the Reason Behind Implementing GST Cess?<\/h2>\n\n\n\n

After GST came\ninto effect, Few States become the net exporter of the goods and services and\nare experiencing a decrease in the indirect tax revenue. However, the Central\ngovernment with a view to compensate the States for the loss in the tax revenue\nhas declared the Goods and Service Tax Compensation Cess which would be levied\nfor a period of 5 years from the GST implementation.<\/p>\n\n\n\n

Salient Aspects of GST Cess<\/h2>\n\n\n\n

The GST Cess of The Goods and Services Tax<\/a> (Compensation to State) Act, 2017 provides the manner of ascertaining the amount of compensation payable to the state during the transition period of 5 years by the Central Government on account of revenue loss attributable to levy goods and services tax. <\/p>\n\n\n\n

The Salient Aspects of the GST Cess are-<\/h3>\n\n\n\n