Transfer of
Right to Use – GST Compensation Cess
[Ref: Notification No. 2/2017- Compensation Cess (Rate) dated 28 June 2017]
[Notification No. 6/2017- Compensation Cess (Rate) dated 13 October 2017 - Leasing Vehicles Purchased before 1 July to Attract 65% of the Rate of Compensation Cess ]
In
exercise of the powers conferred by sub-section (1) and 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, that the cess, on the supply of services of
description specified in column (2) of the Table below and falling in Chapter,
Section, Heading or Group specified in column (3) of the said Table, shall be
levied at the rate specified in the corresponding entry in column (4) of the
said Table.
Table
|
Sl. No. |
Description
of Services |
Chapter,
Section, Heading or Group |
Rate
(in per-cent.) |
|
(1) |
(2) |
(3) |
(4) |
|
1 |
Transfer of the right to use
any goods for any purpose (whether or not for a specified period) for cash,
deferred payment or other valuable consideration |
Chapter 99 |
Same rate of cess as applicable on supply of similar goods involving
transfer of title in goods |
|
2 |
Transfer of right in goods or
of undivided share in goods without the transfer of title thereof |
Chapter 99 |
Same rate of cess as applicable on supply of similar goods involving
transfer of title in goods |
|
2A |
Leasing of motor
vehicles purchased and
leased prior to 1stJuly 2017 |
Chapter 99 |
65 percent
of
the rate of cess asapplicable on supply
of similar goods involving
transfer of title in goods. Note:- Nothing contained in
thisentry
shall apply on or after 1st dayof July, 2020” |
|
3 |
Any other supply of services |
Chapter 99 |
Nil |
2. Explanation.- Reference to “Chapter”, “Section”, “Heading” or
“Group”, wherever they occur, unless the context otherwise requires, shall mean
respectively as “Chapter, “Section” and “Heading” in the scheme
of classification of services annexed to notification No. 11/2017-Central Tax
(Rate), published in the Gazette of India, Extraordinary, Part II, Section 3,
Sub-section (i), dated 28th June, 2017, vide number
G.S.R. 690(E), dated 28th June, 2017.
[Para 2 amended corrigendum dated
01.07.2017]
3. This notification shall come into
force with effect from 1st day of July, 2017.
[F.No. 334/1/2017-TRU]