Section 8 GST Compensation to States Act 2017

By | June 16, 2017
(Last Updated On: July 21, 2017)

Section 8 GST Compensation to States Act 2017

[ Section 8 GST Compensation to States Act 2017 notified w.e.f 01.07.2017 vide Notification No. 1/2017 – Goods and Services Tax Compensation Dated 28th June, 2017 ]

[ Goods And Services Tax (Compensation To States) Act, 2017 . This Act has been assented by the President of India on 12-4-2017. This is an Act to provide for compensation to the States for the loss of revenue arising on account of implementation of the goods and services tax in pursuance of the provisions of the Constitution (One Hundred and First Amendment) Act, 2016. ]

Levy and collection of cess.

8. (1)  There shall be levied a cess on such intra-State supplies of goods or services or both, as provided for in Section 9 of the Central Goods and Services Tax Act [Note 3]  , and such inter-State supplies of goods or services or both as provided for in Section 5 of the Integrated Goods and Services Tax Act , and collected in such manner as may be prescribed, on the recommendations of the Council, for the purposes of providing compensation to the States for loss of revenue arising on account of implementation of the goods and services tax with effect from the date from which the provisions of the Central Goods and Services Tax Act is brought into force, for a period of five years or for such period as may be prescribed [ note -2] on the recommendations of the Council:

Provided that no such cess shall be leviable on supplies made by a taxable person who has decided to opt for composition levy under section 10 of the Central Goods and Services Tax Act.

(2) The cess shall be levied on such supplies of goods and services as are specified in column (2) of the Schedule, on the basis of value, quantity or on such basis at such rate not exceeding the rate set forth in the corresponding entry in column (4) of the Schedule, as the Central Government may, on the recommendations of the Council, by notification [ Note-1 and 2 ]  in the Official Gazette, specify:

Provided that where the cess is chargeable on any supply of goods or services or both with reference to their value, for each such supply the value shall be determined under Section 15 of the Central Goods and Services Tax Act for all intra-State and inter-State supplies of goods or services or both:

Provided further that the cess on goods imported into India shall be levied and collected in accordance with the provisions of section 3 of the Customs Tariff Act, 1975 (51 of 1975), at the point when duties of customs are levied on the said goods under section 12 of the Customs Act, 1962 (52 of 1962), on a value determined under the Customs Tariff Act, 1975.


Note

  1. Seeks to notify Rates of goods and services tax compensation cess under Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017). vide Notification No.1/2017-Compensation Cess (Rate) Dated 28th June, 2017
  2. To notify the rates of compensation cess on supply of specified services under Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017). vide  Notification No.2/2017-Compensation Cess (Rate) Dated 28th June, 2017
  3. No GST compensation cess under reverse charge on intra state supplies of second hand goods vide Notification No 04/2017 Compensation Cess (Rate)  Dated 20th July, 2017

Read All Sections of Goods And Services Tax (Compensation To States) Act, 2017 .

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