CBIC extended GST Compensation Cess levy beyond July 2022 till March 2026 | Get Notification
After getting representation from various state governments Central Board of Indirect Tax (CBIC) finally extended levy of GST compensation cess till 31st March 2026.
Earlier government has fixed the last date for levy of GST compensation cess till 1st July 2022 but due to the covid pandemic states could not recovered their revenue losses occurred on implementation of Goods and Service Tax (GST) with effect from 1st July 2017.
GST compensation cess came into force to compensate states for 1st 5 years from implementation of GST to recover revenues loss arises on implementation of GST and elimination of various indirect taxes collected by the state governments.
The content of the Notification can be read as under;
G.S.R. 468(E).—In exercise of the powers conferred by sub-section (2) of section 12 read with 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 makes the following rules, namely:-
Short title and commencement.-
1. (1)These rules may be called the Goods and Services Tax (Period of Levy and Collection of Cess) Rules, 2022.
(2) They shall come into force with effect from the 1st day of July, 2022.
Period for levy and collection of Cess.-
2. The period for levy and collection of cess under sub-section (1) of section 8 of the Goods and Services Tax (Compensation to States) Act, 2017 shall be upto the 31st March, 2026.