Seeks to amend Notification No. 1/2017 -Compensation Cess (Rate) dated 28.06.2017 to give effect to the recommendations of the GST Council in it's 28th meeting held on 21.07.2018
Amendments to Compensation Cess Rates under GST Act (Notification No. 2/2018)
The Government of India, through the Ministry of Finance's Department of Revenue, issued Notification No. 2/2018-Compensation Cess (Rate) on July 26, 2018. This notification, made under the powers granted by sub-section (2) of section 8 of the Goods and Services Tax (Compensation to States) Act, 2017, introduces amendments to a previous notification (No. 1/2017-Compensation Cess (Rate) dated June 28, 2017).
The amendments include two main changes to the existing schedule of goods. First, a new entry, numbered 41A, is added for "Coal rejects supplied by a coal washery" where no compensation cess is applicable, provided the input tax credit has not been availed by any person. Second, a new entry, numbered 42B, is introduced for "Fuel Cell Motor Vehicles," which similarly attracts no compensation cess.
This notification took effect on July 27, 2018. The original notification No. 1/2017-Compensation Cess (Rate) was last amended by notification No. 1/2018-Compensation Cess (Rate) on January 25, 2018. The amendments aim to update the compensation cess rates applicable to specific goods under the GST framework.
Note: It is an AI generated summary for reference purpose only.
