gsthead01
cess compensation under GST
GST – Goods and Service Tax was launched in India in July 2017 replacing the old taxation system that existed in the country. Compensation cess is charged on goods at their consumption destination and not where they are manufactured. So manufacturing states like Maharashtra, Gujarat, Haryana, Tamil Nadu etc. feared revenue losses and to cover this issue, the government introduced Compensation Cess under GST. It was pre-decided that compensation cess will be levied only for the first 5 years of the GST regime i.e. from July 1st, 2017 to July 1st, 2022.
cess compensation under GST
GST – Goods and Service Tax was launched in India in July 2017 replacing the old taxation system that existed in the country. Compensation cess is charged on goods at their consumption destination and not where they are manufactured. So manufacturing states like Maharashtra, Gujarat, Haryana, Tamil Nadu etc. feared revenue losses and to cover this issue, the government introduced Compensation Cess under GST. It was pre-decided that compensation cess will be levied only for the first 5 years of the GST regime i.e. from July 1st, 2017 to July 1st, 2022.