Seeks to amend notification No. 1/2017- Compensation Cess (Rate), dated 28th, June, 2017 so as to increase the Compensation Cess rates on cigarettes as mentioned in the notification with effect from 18th, July, 2017

Amendments to Compensation Cess Rates under GST Act - Notification No. 3/2017

The Indian Government, through the Ministry of Finance's Department of Revenue, issued Notification No. 3/2017 on July 18, 2017. This notification amends the earlier Notification No. 1/2017-Compensation Cess (Rate), dated June 28, 2017, under the Goods and Services Tax (Compensation to States) Act, 2017. The amendments are made based on recommendations from the GST Council, as empowered by sub-section (2) of section 8 of the Act.

The notification specifies changes in the compensation cess rates for certain goods listed in the schedule of the original notification. The amendments adjust the rates as follows: For S. No. 10, 12, and 13, the rate is set at "5% + Rs. 2076 per thousand"; for S. No. 11 and 14, it is "5% + Rs. 3668 per thousand"; and for S. No. 15, the rate is "36% + Rs. 4170 per thousand". These changes are effective from July 18, 2017.

The notification is authorized by Ruchi Bisht, Under Secretary to the Government of India, and is documented under reference number F.No.354/159/2017-TRU. The principal notification was initially published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), under number G.S.R. 720(E).