GST CC on Pan Masala, Aerated Waters Drinks, Tobacco, Motor Vehicles, Aircrafts and Yachts

[In SNo. 42, Item description and HS Code amended by Corrigendum dated 30.06.2017]

[Notification No. 01/2017-Compensation Cess (Rate) dated 28th June, 2017 As amended by 03/2017-Compensation Cess (Rate) dated 18.07.2017; 05/2017-Compensation Cess (Rate) dated 11.09.2017; 01/2018-Compensation Cess (Rate) dated 25.01.2018; 02/2019- Compensation Cess (Rate) dated 30.09.2019; 02/2021- Compensation Cess (Rate) dated 28.12.2021; 01/2023- Compensation Cess(Rate) dated 28.02.2023; 02/2023- Compensation Cess (Rate) dated 31.03.2023; 03/2023- Compensation Cess (Rate) dated 26.07.2023; 02/2025- Compensation Cess (Rate) dated 17.09.2025]

[Notification No 3/2023-Notificatin 01/2017 amended - Compensation Cess (Rate) dated 26 July, 2023 - Govt Accepts Pan Masala with 60% Abatement for GST Compensation Cess Valuation; Branded Tobacco back to Abatement for CC Valuation]

[03/2017-Compensation Cess (Rate) dated 18.07.2017 – Compensation cess raised on SNos. 10 to 15]

[Notification No. 5/2017-Compensation Cess (Rate) dated 11 September 2017 - Compensation Cess on Electric Vehicles of Engine Capacity Exceeding 4000 mm 15%; Motor Vehicles of Engine Capacity Not Exceeding 1500 cc Raised to 17% from 15%; Exceeding 1500cc other than SUVs 20% from 15%; SUVs including Utility Vehicles 22% from 15%]

[02/2018-Compensation Cess (Rate) dated 26.07.2018 – SNo. 41A and 42B inserted]

In exercise of the powers conferred by sub-section (2) of section 8 of the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017), the Central Government, on the recommendations of the Council, hereby notifies the rate of cess as specified in column (4) of the Schedule appended to this notification, that shall be levied on the intra-State supplies or inter-State supplies of such goods, the description of which is specified in the corresponding entry in column (3) and falling under the tariff item, sub- heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Schedule.

 

Schedule

SNo.

Chapter / Heading/ Sub-heading / Tariff item

Description of Goods

Rate of goods and services tax compensation cess

(1)

(2)

(3)

(4)

1.

2106 90 20

Pan Masala with declared retail sale price

[03/2023- Compensation Cess (Rate)/26.07.2023 – words in bold inserted]

[02/2023-Compensation Cess (Rate)/31.03.2023 – Rate revised to 0.32R per unit from 60%]

0.32R per unit

60%

1A

2106 90 20

Pan Masala, other than goods covered under S. No. 1 above

[03/2023- Compensation Cess (Rate)/26.07.2023 – SNo. 1A inserted]

60%

2.

2202 10 10

Aerated waters
[02/2025- Compensation Cess (Rate)/17.09.2025 -Rate Cut to Nil from 12%]

Nil 12%

3.

2202 10 20

Lemonade
[02/2025- Compensation Cess (Rate)/17.09.2025 -Rate Cut to Nil from 12%]

Nil 12%

4.

2202 10 90

Others
[02/2025- Compensation Cess (Rate)/17.09.2025 -Rate Cut to Nil from 12%]

Nil 12%

4A

2202 99 90

Caffeinated Beverages
[02/2025- Compensation Cess (Rate)/17.09.2025 -Rate Cut to Nil from 12%]

[02/2019-Compensation Cess (Rate)/30.09.2019 – SNo. 4A inserted]

Nil 12%

4B

2202

Carbonated Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice.

[02/2025- Compensation Cess (Rate)/17.09.2025 -Rate Cut to Nil from 12%]
[01/2021-Compnsation Cess(Rate)/30.09.2021- Sno. 4B Inserted]

Nil 12%

5.

2401

Unmanufactured tobacco (without lime tube) – bearing a brand name with declared retail sale price

[02/2023-Compensation Cess (Rate)/31.03.2023 – Rate revised to 0.36R per unit from 71%]

0.36R per unit

71%

5A

2401

Unmanufactured tobacco (without lime tube)– bearing a brand name, other than goods covered under S. No. 5 above

[03/2023- Compensation Cess (Rate)/26.07.2023 – SNo. 5A Inserted]

71%

6.

2401

Unmanufactured tobacco (with lime tube) – bearing a brand name with declared retail sale price

[02/2023-Compensation Cess (Rate)/31.03.2023 – Rate revised to 0.36R per unit from 65%]

0.36R per unit

65%

6A

2401

Unmanufactured tobacco (with lime tube)– bearing a brand name, other than goods covered under S. No. 6 above

[03/2023- Compensation Cess (Rate)/26.07.2023 – SNo. 6A Inserted]

65%

7.

2401 30 00

Tobacco refuse, bearing a brand name with declared retail sale price

[02/2023-Compensation Cess (Rate)/31.03.2023 – Rate revised to 0.32R per unit from 61%]

0.32R per unit

61%

7A

2401 30 00

Tobacco refuse, bearing a brand name, other than goods covered under S. No. 7 above

[03/2023- Compensation Cess (Rate)/26.07.2023 – SNo. 7A Inserted]

61%

8.

2402 10 10

Cigar and cheroots

21% or Rs. 4170 per thousand, whichever is higher

9.

2402 10 20

Cigarillos

21% or Rs. 4170 per thousand, whichever is higher

10.

2402 20 10

Cigarettes containing tobacco other than filter cigarettes, of length not exceeding 65 millimetres

5% + Rs.2076 1591 per thousand

11.

2402 20 20

Cigarettes containing tobacco other than filter cigarettes, of length exceeding 65 millimetres but not exceeding 75 millimetres

5% + Rs.3668 2876 per thousand

12.

2402 20 30

Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) not exceeding 65 millimetres

5% + Rs.2076 1591 per thousand

13.

2402 20 40

Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 65 millimetres but not exceeding 70 millimetres

5% + Rs.2747 2126 per thousand

14.

2402 20 50

Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 70 millimetres but not exceeding 75 millimetres

5% + Rs.3668 2876 per thousand

15.

2402 20 90

Other cigarettes containing tobacco

5 36% + Rs.4170 per thousand

16.

2402 90 10

Cigarettes of tobacco substitutes

Rs. 4,006 per thousand

17.

2402 90 20

Cigarillos of tobacco substitutes

12.5% or Rs. 4,006 per thousand whichever is higher

18.

2402 90 90

Other

12.5% or Rs. 4,006 per thousand whichever is higher

19.

2403 11 10

'Hookah' or 'gudaku' tobacco bearing a brand name with declared retail sale price

[02/2023-Compensation Cess (Rate)/31.03.2023 – Rate revised to 0.36R per unit from 72%]

0.36R per unit

72%

19A

2403 11 10

'Hookah' or 'gudaku' tobacco, bearing a brand name, other than goods covered under S. No. 19 above

[03/2023- Compensation Cess (Rate)/26.07.2023 – SNo. 19A Inserted]

72%

20.

2403 11 10

Tobacco used for smoking 'hookah' or 'chilam' commonly known as 'hookah' tobacco or 'gudaku' not bearing a brand name with declared retail sale price

[02/2023-Compensation Cess (Rate)/31.03.2023 – Rate revised to 0.12R per unit from 17%]

0.12R per unit

17%

20A.

2403 11 10

Tobacco used for smoking 'hookah' or 'chilam' commonly known as 'hookah' tobacco or 'gudaku', not bearing a brand name, other than goods covered under S. No. 20 above

[03/2023- Compensation Cess (Rate)/26.07.2023 – SNo. 20A Inserted]

17%

21.

2403 11 90

Other water pipe smoking tobacco not bearing a brand name with declared retail sale price

[02/2023-Compensation Cess (Rate)/31.03.2023 – Rate revised to 0.08R per unit from 11%]

0.08R per unit

11%

21A.

2403 11 90

Other water pipe smoking tobacco, not bearing a brand name, other than goods covered under S. No. 21 above

[03/2023- Compensation Cess (Rate)/26.07.2023 – SNo. 21A Inserted]

11%

22.

2403 19 10

Smoking mixtures for pipes and cigarettes, with declared retail sale price

[02/2023-Compensation Cess (Rate)/31.03.2023 – Rate revised to 0.69R per unit from 290%]

0.69R per unit

290%

22A.

2403 19 10

Smoking mixtures for pipes and cigarettes, other than goods covered under S. No. 22 above

[03/2023- Compensation Cess (Rate)/26.07.2023 – SNo. 22A Inserted]

290%

23.

2403 19 90

Other smoking tobacco bearing a brand name with declared retail sale price

[02/2023-Compensation Cess (Rate)/31.03.2023 – Rate revised to 0.28R per unit from 49%]

0.28R per unit

49%

23A.

2403 19 90

Other smoking tobacco bearing a brand name, other than goods covered under S. No. 23 above

[03/2023- Compensation Cess (Rate)/26.07.2023 – SNo. 23A Inserted]

49%

24.

2403 19 90

Other smoking tobacco not bearing a brand name with declared retail sale price

[02/2023-Compensation Cess (Rate)/31.03.2023 – Rate revised to 0.08R per unit from 11%]

0.08R per unit

11%

24A.

2403 19 90

Other smoking tobacco, not bearing a brand name, other than goods covered under S. No. 24 above

[03/2023- Compensation Cess (Rate)/26.07.2023 – SNo. 24A Substituted]

[02/2023-Compensation Cess (Rate)/31.03.2023 – SNo. 24A inserted]

11%

24B.

2403 91 00

“Homogenised” or “reconstituted” tobacco, bearing a brand name with declared retail sale price

0.36R per unit

24C

2403 91 00

“Homogenised” or “reconstituted” tobacco, bearing a brand name, other goods covered under S.No. 24B above

[03/2023- Compensation Cess (Rate)/26.07.2023 – SNo. 24B, 24C substituted]

72%

25.

2403 91 00 or 2404 11 00

“Homogenised” or “reconstituted” tobacco, bearing a brand name

[02/2023-Compensation Cess (Rate)/31.03.2023 – HS Code 2403 91 00 deleted]

72%

26.

2403 99 10

Chewing tobacco (without lime tube), with declared retail sale price

[02/2023-Compensation Cess (Rate)/31.03.2023 – Rate revised to 0.56R per unit from 160%]

0.56R per unit

160%

26A.

2403 99 10

Chewing tobacco (without lime tube), other than goods covered under S. No. 26 above

[03/2023- Compensation Cess (Rate)/26.07.2023 – SNo. 26A Inserted]

160%

27.

2403 99 10

Chewing tobacco (with lime tube), with declared retail sale price

[02/2023-Compensation Cess (Rate)/31.03.2023 – Rate revised to 0.56R per unit from 142%]

0.56R per unit

142%

27A.

2403 99 10

Chewing tobacco (with lime tube), other than goods covered under S. No. 27 above

[03/2023- Compensation Cess (Rate)/26.07.2023 – SNo. 27A Inserted]

142%

28.

2403 99 10

Filter khaini, with declared retail sale price

[02/2023-Compensation Cess (Rate)/31.03.2023 – Rate revised to 0.56R per unit from 160%]

0.56R per unit

160%

28A.

2403 99 10

Filter khaini, other than goods covered under S. No. 28 above

[03/2023- Compensation Cess (Rate)/26.07.2023 – SNo. 28A Inserted]

160%

29.

2403 99 20

Preparations containing chewing tobacco, with declared retail sale price

[02/2023-Compensation Cess (Rate)/31.03.2023 – Rate revised to 0.36R per unit from 72%]

0.36R per unit

72%

29A.

2403 99 20

Preparations containing chewing tobacco, other than goods covered under S. No. 29 above

[03/2023- Compensation Cess (Rate)/26.07.2023 – SNo. 29A Inserted]

72%

30.

2403 99 30

Jarda scented tobacco, with declared retail sale price

[02/2023-Compensation Cess (Rate)/31.03.2023 – Rate revised to 0.56R per unit from 160%]

0.56R per unit

160%

30A.

2403 99 30

Jarda scented tobacco, other than goods covered under S. No. 30 above

[03/2023- Compensation Cess (Rate)/26.07.2023 – SNo. 30A Inserted]

160%

31.

2403 99 40

Snuff, with declared retail sale price

[02/2023-Compensation Cess (Rate)/31.03.2023 – Rate revised to 0.36R per unit from 72%]

0.36R per unit

72%

31A.

2403 99 40

Snuff, other than goods covered under S. No. 31 above

[03/2023- Compensation Cess (Rate)/26.07.2023 – SNo. 31A Inserted]

72%

32.

2403 99 50

Preparations containing snuff, with declared retail sale price

[02/2023-Compensation Cess (Rate)/31.03.2023 – Rate revised to 0.36R per unit from 72%]

0.36R per unit

72%

32A.

2403 99 50

Preparations containing snuff, other than goods covered under S. No. 32 above

[03/2023- Compensation Cess (Rate)/26.07.2023 – SNo. 32A Inserted]

72%

33.

2403 99 60

Tobacco extracts and essence bearing a brand name with declared retail sale price

[02/2023-Compensation Cess (Rate)/31.03.2023 – Rate revised to 0.36R per unit from 72%]

0.36R per unit

72%

33A.

2403 99 60

Tobacco extracts and essence, bearing a brand name, other than good covered under S. No. 33 above

[03/2023- Compensation Cess (Rate)/26.07.2023 – SNo. 33A Inserted]

72%

34.

2403 99 60

Tobacco extracts and essence not bearing a brand name with declared retail sale price

[02/2023-Compensation Cess (Rate)/31.03.2023 – Rate revised to 0.36R per unit from 65%]

0.36R per unit

65%

34A.

2403 99 60

Tobacco extracts and essence, not bearing a brand name, other than goods covered under S. No. 34 above

[03/2023- Compensation Cess (Rate)/26.07.2023 – SNo. 34A Inserted]

65%

35.

2403 99 70

Cut tobacco, with declared retail sale price

[02/2023-Compensation Cess (Rate)/31.03.2023 – Rate revised to 0.14R per unit from 20%]

0.14R per unit

20%

35A.

2403 99 70

Cut tobacco, other than goods covered under S. No. 35 above

[03/2023- Compensation Cess (Rate)/26.07.2023 – SNo. 35A Inserted]

20%

36.

2403 99 90

Pan masala containing tobacco ‘Gutkha’, with declared retail sale price

[02/2023-Compensation Cess (Rate)/31.03.2023 – Rate revised to 0.61R per unit from 204%]

0.61R per unit

204%

36A

2403 99 90

Pan masala containing tobacco 'Gutkha', other than goods covered under S. No. 36 above

204%

0.43R per unit

36B

2403 99 90

All goods, other than pan masala containing tobacco 'gutkha', bearing a brand name, with declared retail sale price

0.43R per unit

36C.

2403 99 90

All goods, other than pan masala containing tobacco 'gutkha', bearing a brand name, other than good covered under S. No. 36B above

96%

36D.

2403 99 90

All goods, other than pan masala containing tobacco 'gutkha', not bearing a brand name, with declared retail sale price

0.43R per unit

36E.

2403 99 90

All goods, other than pan masala containing tobacco 'gutkha', not bearing a brand name, other than goods covered under S. No. 36D above

[02/2023-Compensation Cess (Rate)/26.07.2023 – SNo. 36A, 36B, 36C, 36D, 36E Substituted]

89%

37.

2403 99 90 or 2404 11 00 or 2404 19 00

All goods, other than pan masala containing tobacco 'gutkha', bearing a brand name

96%

38.

2403 99 90 or 2404 11 00 or 2404 19 00

All goods, other than pan masala containing tobacco 'gutkha', not bearing a brand name

[02/2023-Compensation Cess (Rate)/31.03.2023 – In SNo 37 and 38, HS Code 2403 99 90 deleted]

89%

39.

2701

Coal; briquettes, ovoids and similar solid fuels manufactured from coal.

[02/2025- Compensation Cess (Rate)/17.09.2025 -Rate Cut to Nil from Rs. 400 per tonne]

Nil Rs.400 per tonne

40.

2702

Lignite, whether or not agglomerated, excluding jet

[02/2025- Compensation Cess (Rate)/17.09.2025 -Rate Cut to Nil from Rs. 400 per tonne]

Nil Rs.400 per tonne

41.

2703

Peat (including peat litter), whether or not agglomerated

[02/2025- Compensation Cess (Rate)/17.09.2025 -Rate Cut to Nil from Rs. 400 per tonne]

Nil Rs.400 per tonne

41A

27

Coal rejects supplied by a coal washery or by a coal washery, arising out of coal on which compensation cess has been paid and input tax credit thereof has not been availed by any person.

[01/2023-Compensation Cess (Rate)/28.02.2023 – bold words inserted
02/2018-Compensation Cess (Rate)/26.07.2018 – Sl.No.41A inserted]

NIL

42.

8702 10, 8702 20, 8702 30, 8702 90

Motor vehicles for the transport of ten or more not more than 13 persons, including the driver, other than the vehicles of the description mentioned in S. No. 50 and 51

[02/2025- Compensation Cess (Rate)/17.09.2025 -Rate Cut to Nil from 15%]

[Item description and HS Code Amended Corrigendum dated 30.06.2017;

02/2019-Compensation Cess (Rate)/30.09.2019 – SNo. 42 amended]

Nil 15%

42A

87

All old and used motor vehicles

Explanation: Nothing contained in this entry shall apply if the supplier of such goods has availed input tax credit as defined in clause (63) of section 2 of the Central Goods and Services Tax Act, 2017, CENVAT credit as defined in CENVAT Credit Rules, 2004, or the input tax credit of Value Added Tax or any other taxes paid on such vehicles.

[01/2018-Compensation Cess (Rate)/25.01.2018 – Sl.No.42A inserted]

NIL

42B

87

Fuel Cell Motor Vehicles

[02/2018-Compensation Cess (Rate)/26.07.2018 – Sl.No.42B inserted]

NIL

43.

8702 or 8703

Motor vehicles cleared as ambulances duly fitted with all the fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such motor vehicles

[01/2018-Compensation Cess (Rate)/25.01.2018 – Sl.No.43  amended – HS Code 8702 inserted]

NIL

44.

8703 10 10, 8703 80

Electrically operated vehicles, including three wheeled electric motor vehicles.

NIL

45.

8703

Three wheeled vehicles

NIL

46.

8703

Following motor vehicles of length not exceeding 4000 mm, namely: -

(a)  Petrol, Liquefied petroleum gases (LPG) or compressed natural gas  (CNG) driven vehicles of engine capacity not exceeding 1200 cc; and

(b)  Diesel driven vehicles of engine capacity not exceeding 1500 cc

for persons with orthopedic physical disability, subject to the condition that an officer not below the rank of Deputy Secretary to the Government of India in the Department of Heavy Industries certifies that the said goods shall be used by the persons with orthopedic physical disability in accordance with the guidelines issued by the said Department

[02/2019-Compensation Cess (Rate)/30.09.2019 – SNo. 46 amended]

NIL

47.

8703 40, 8703 50, 8703 60

Following Vehicles, with both spark-ignition internal combustion reciprocating piston engine and electric motor as motors for propulsion:

 

 

 

(a) Motor vehicles cleared as ambulances duly fitted with all the fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such motor vehicles

Nil

 

 

(b) Three wheeled vehicles

Nil

 

 

(c) Motor vehicles of engine capacity not exceeding 1200cc and of length not exceeding 4000 mm

Nil

 

 

(d) Motor vehicles other than those mentioned at (a), (b) and (c)above.

Nil 15%

 

 

Explanation.- For the purposes of this entry, the specification of themotor vehicle shall be determined as per the Motor Vehicles Act,1988 (59 of 1988) and the rules made there under.

[02/2025- Compensation Cess (Rate)/17.09.2025 -Rate Cut to Nil from 15%]

 

48

8703 50, 8703 70

Following Vehicles, with both compression-ignition internal combustion piston engine [diesel-or semi diesel] and electric motor as motors forpropulsion:

 

 

 

(a) Motor vehicles cleared as ambulances duly fitted with all the fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such motor vehicles

Nil

 

 

(b) Three wheeled vehicles

Nil

 

 

(c) Motor vehicles of engine capacity not exceeding 1500 cc and of length not exceeding 4000 mm

Nil

 

 

(d) Motor vehicles other than those mentioned at (a), (b) and (c)above.

Nil 15%

 

 

Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act,1988 (59 of 1988) and the rules made there under.

 

 

 

[02/2025- Compensation Cess (Rate)/17.09.2025 -Rate Cut to Nil from 15%]

[Notification No. 5/2017-Compensation Cess (Rate) dated 11 September 2017 – SNos. 47 and 48 amended]

 

49.

8703

Hydrogen vehicles based on fuel cell tech and of length not exceeding 4000 mm.

Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under.

NIL

50.

8702, 8703 21 or 8703 22

Petrol, Liquefied petroleum gases (LPG) or compressed natural gas (CNG) driven motor vehicles of engine capacity not exceeding 1200cc and of length not exceeding 4000 mm.

Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under.

[02/2025- Compensation Cess (Rate)/17.09.2025 -Rate Cut to Nil from 1%]

[02/2019-Compensation Cess (Rate)/30.09.2019 – SNo. 50 amended – Heading 8702 included]

Nil 1%

51.

8702, 8703 31

Diesel driven motor vehicles of engine capacity not exceeding 1500 cc and of length not exceeding 4000 mm.

Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under.

[02/2025- Compensation Cess (Rate)/17.09.2025 -Rate Cut to Nil from 3%]

[02/2019-Compensation Cess (Rate)/30.09.2019 – SNo. 50 amended – Heading 8702 included]

Nil 3%

52.

8703

Motor vehicles of engine capacity not exceeding 1500 cc

[02/2025- Compensation Cess (Rate)/17.09.2025 -Rate Cut to Nil from 17%]

Nil 17%

52A

8703

Motor vehicles of engine capacity exceeding 1500 cc other than motor vehicles specified against entry at S. No 52B

[02/2025- Compensation Cess (Rate)/17.09.2025 -Rate Cut to Nil from 20%]

Nil 20%

52B

8703

Motor vehicles known as Utility Vehicles, by whatever name called including Sports Utility Vehicles (SUV), Multi Utility Vehicles (MUV), Multi -purpose vehicles (MPV) or Cross-Over Utility Vehicles (XUV), with engine capacity exceeding 1500 cc; Length exceeding 4000 mm and Ground Clearance of 170 mm and above.

Explanation: For the purpose of this entry, the Ground Clearance means ground clearance in unladen condition.

[02/2025- Compensation Cess (Rate)/17.09.2025 -Rate Cut to Nil from 22%]

[Notification No. 5/2017-Compensation Cess (Rate) dated 11 September 2017 – SNos. 52 amended and 52A and 52B inserted; 03/2023-CC – SN. 52B amended]

Nil 22%

53.

8711

Motorcycles of engine capacity exceeding 350 cc.

[02/2025- Compensation Cess (Rate)/17.09.2025 -Rate Cut to Nil from 3%]

Nil 3%

54.

8802 or 8806

Other aircraft (for example, helicopters, aeroplanes), for personal use.

[02/2025- Compensation Cess (Rate)/17.09.2025 -Rate Cut to Nil from 3%]

Nil 3%

55.

8903

Yacht and other vessels for pleasure or sports

[02/2025- Compensation Cess (Rate)/17.09.2025 -Rate Cut to Nil from 3%]

Nil 3%

56.

Any chapter

All goods other than those mentioned at S. Nos. 1 to 55 above

Nil

[02/2021- Compensation Cess (Rate) dated 28.12.2021 – SNos. 25, 37, 38 and 54 amended. - HS2022 Changes w.e.f. 1 Jan 2022 incorporated]

Explanation.–

(1) In this Schedule, “tariff item”, “heading”, “sub-heading” and “Chapter” shall mean respectively a tariff item, heading, sub-heading and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).

(2) The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification.

(3) For the purposes of this notification, the phrase “brand name” means brand name or trade name, whether registered or not, that is to say, a name or a mark, such as symbol, monogram, label, signature or invented word or writing which is used in relation to such specified goods for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified goods and some person using such name or mark with or without any indication of the identity of that person.

(4) For the purposes of this notification, “R” appearing in column (4) means “retail sale price” as provided in the Schedule to the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017).

[02/2023-Compensation Cess (Rate)/31.03.2023 – Explanation (4) inserted]

(5) For the purposes of this notification, the words “declared retail sale price”, with respect to the goods specified in column (3) of the Schedule above, shall mean the retail sale price of such goods which are required to be declared in compliance with the provisions of the Legal Metrology Act, 2009 (1 of 2010) or the rules made thereunder or under any other law for the time being in force”;

[03/2023- Compensation Cess (Rate)/26.07.2023 - Explanation (5) inserted]

Illustration: Calculation of goods and services tax compensation cess on Pan Masala (S. No. 1 in the Schedule above):

Rate of goods and services tax compensation cess = 0.32R per unit;

If retail sale price of unit (pouch)of Pan Masala = Rs. 10;

goods and services tax compensation cess leviable = 0.32R = 0.32*10 = Rs. 3.2 per unit (pouch)

[02/2023-Compensation Cess (Rate)/31.03.2023 – Illustration inserted]

2. This notification shall come into force with effect from the 1st day of July, 2017.

[F.No.354/117/2017-TRU]