GST Compensation Cess

THE GOODS AND SERVICES TAX (COMPENSATION TO

STATES) ACT, 2017 get the assent of the President on
a) April 15, 2017
b) July 01, 2017
c) April 12, 2017.
d) June 30, 2017
An Act to provide for -------for the loss of revenue arising on account of
implementation of the goods and services tax

e) Compensation to the States..

f) Compensation to the Centre
g) Compensation to the Both Centre and States
h) Compensation to registered persons

Fund” means the ----- referred to in section 10;

a) Goods and Services Tax Compensation Fund..

b) Goods and Services Tax Cess Fund
c) Goods and Services Tax reserve Fund
“input tax” in relation to a taxable person, means,––
a) Cess charged on any supply of goods or services or both made to
him;
b) Cess charged on import of goods and includes the cess payable on
reverse charge basis
c) Tax charged on any supply of goods or services or both made to
him;
d) Tax charged on import of goods and includes the cess payable on
reverse charge basis;

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1) Both a and b
2) Both c and d

“transition date” shall mean

a) 1st July 2017

b) date on which the State Goods and Services Tax Act of the
concerned State comes into force
c) 13th April 2017

“transition period” shall mean

a) 4 year from the “transition date’’

b) 5 year from the “transition date’’
c) 6 years from the ‘’transition date’’

The projected nominal growth rate of revenue subsumed for a State

during the transition period shall be

15% pa
14% pa
10% pa
18% pa

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Compensation cess period extend to

April 2025
March 2026.
June 2026

The compensation cess will be extended to March 2026 taken in

46th Council meeting

45th Council meeting
44th Council meeting

For the purpose of calculating the compensation amount payable in any

financial year during the transition period, the financial year ending -----
- shall be taken as the base year.

31st March, 2016

30th July, 2017
31st March, 2017

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The base year revenue for a State shall be the sum of the revenue
collected by the State and the local bodies during the base year, on
account of the taxes levied by the respective State or Union and net of
refunds but not include

a) Taxes on sale or purchase of petroleum crude, high speed diesel,

motor spirit, natural gas, aviation turbine fuel and alcoholic liquor
for human consumption;

b) Entertainment tax levied by the State but collected by local bodies

c) Cess on sale or purchase of petroleum crude, high speed diesel,

motor spirit, natural gas, aviation turbine fuel and alcoholic liquor
for human consumption;

Base year revenue shall include the amount of tax collected on sale of
services in which state?

a) Jammu and Kashmir

b) Kerala
c) Punjab
d) Mizoram

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Amount of revenue foregone on account of exemptions or remission

given by the said State Governments to promote industrial investment in
the State sub-clause (g) of clause (4) of article 279A

Base year revenue shall be calculated as per sub-sections (1), (2), (3) and
(4) on the basis of the figures of revenue collected and net of refunds
given in that year is to be audited by

a) Chartered accountant
b) C&AG
c) GST Commissioner
d) Finance minister

The projected revenue for any year in a State

a) Projected growth rate over the base year revenue of that State..
b) Esitmated growth rate over the base year revenue of that State
c) Actual growth rate over the base year revenue of that State

If the base year revenue for 2015-16 for a concerned State, calculated as
per section 5 is one hundred rupees, then the projected revenue for
financial year 2018-19 shall be as follows—
Projected Revenue for 2018-19-100 (1+14/100)3

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The compensation payable to a State shall be provisionally calculated

and released at the end of

a) Every two months period,-

b) Every six months period,

c) Every three months period,

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GST Compensation
Goods
Cess

Cut tobacco 20%

Unmanufactured tobacco (with lime tube) –

65%
featuring a brand name

Unmanufactured tobacco (without lime tube) – with

71%
a brand name

Branded tobacco refuse 61%

Tobacco extracts and essence bearing a

72%
brand name

Tobacco extracts and essence not bearing a

65%
brand name

Filter khaini 160%

Jarda scented tobacco 160%

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21% or 4170 per

Cheroots and Cigar thousand, whichever
higher

21% or Rs. 4170 per

Cigarillos thousand, whichever is
higher

Cigarettes containing tobacco excluding filter 5% + 2076 per

cigarettes, of length not more than 65mm thousand

Cigarettes containing tobacco apart from filter

5% + 3668 per
cigarettes, of length more than 65mm and up to
thousand
75mm

Filter cigarettes of length (including the length of

the filter, the length of filter being 11 millimetres 5% + Rs.2076 per
or its actual length, whichever is more) not thousand
exceeding 65 millimetres

Filter cigarettes of length (including the length of

5% + Rs.2747 per
the filter, the length of filter being 11 millimetres or
thousand
its actual length, whichever is more) exceeding 65

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GST Compensation Cess

millimetres but not exceeding 70 millimetres

Filter cigarettes of length (including the length of

the filter, the length of filter being 11 millimetres or 5% + Rs.3668 per
its actual length, whichever is more) exceeding 70 thousand
millimetres but not exceeding 75 millimetres

Cigarettes of tobacco substitutes Rs.4006 per thousand

12.5% or Rs. 4,006 per

Cigarillos of tobacco substitutes thousand whichever is
higher

Smoking mixtures for pipes and cigarettes 290%

Branded ‘hookah’ or ‘gudaku’ tobacco 72%

Tobacco used for smoking ‘hookah’ or ‘chilam’

commonly known as ‘hookah’ tobacco or 17%
‘gudaku’, not bearing a brand name

Other water pipe smoking tobacco not bearing

11%
a brand name

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Other smoking tobacco bearing a brand name 49%

Other smoking tobacco not bearing a brand name 11%

Homogenised or reconstituted tobacco, bearing a

72%
brand name

Chewing tobacco (without lime tube) 160%

Chewing tobacco (with lime tube) 142%

Preparations containing chewing tobacco 72%

Pan masala (gutkha) containing tobacco 204%

All goods, other than pan masala containing

96%
tobacco ‘gutkha’, bearing a brand name

All goods, other than pan masala containing

89%
tobacco ‘gutkha’, not bearing a brand name

Snuff 72%

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Preparations containing snuff 72%

Coal, ovoids, briquettes, and similar solid fuels

manufactured from lignite, coal, whether or not
Rs.400 per tonne
agglomerated, excluding jet, peat (including peat
litter), whether or not agglomerated

Aerated waters 12%

Lemonade 12%

Others 12%

Motorcycles of engine capacity exceeding 350 cc 3%

Aircrafts (including helicopters, etc.) for personal

3%
use

Yacht and other vessels for pleasure or sports 3%

Motor vehicles for the transport of not more than

15%
13 persons, including the driver

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Motor vehicles, excluding ambulances, three-

wheelers and vehicles of engine capacity not
exceeding 1500cc and of length not exceeding
4000 mm, with both spark-ignition internal
combustion reciprocating piston engine and 15%
electric motor as motors for propulsion or with with
both compression-ignition internal combustion
piston engine [diesel-or semi diesel] and electric
motor as motors for propulsion

Petrol, liquefied petroleum gas (LPG) or

compressed natural gas (CNG) driven motor
1%
vehicles of engine capacity not exceeding 1200cc
and of length not exceeding 4000mm.

Diesel driven motor vehicles of engine capacity not

exceeding 1500cc and of length not exceeding 3%
4000mm.

Motor vehicles of engine capacity not exceeding

17%
1500 cc

Motor vehicles of engine capacity exceeding 1500

20%
cc other than motor vehicles specified against

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entry at S. No 52B

Motor vehicles of engine capacity over 1500cc,

popularly known as Sports Utility Vehicles (SUVs) 22%
including utility vehicles.

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