Notification No. 01/2017 - Compensation Cess (Rate)

[TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY]

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)

Notification No.1/2017- Compensation Cess (Rate)

New Delhi, the 28th June, 2017

G.S.R. (E).- 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

S. No.	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	¹⁷[Pan Masala with declared retail sale price] ^[helldodold[Pan-masala]^helldod]	¹⁴[0.32R per unit] ^[helldodold[60%]^helldod]
¹⁶[1A.	2106 90 20	Pan Masala, other than goods covered under S. No. 1 above	60%]
2.	2202 10 10	Aerated waters	12%
3.	2202 10 20	Lemonade	12%
4.	2202 10 90	Others	12%
⁹[4A	22029990	Caffeinated Beverages	12%]
¹¹[4B	*2202	Carbonated Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice.	12%]
5.	2401	Unmanufactured tobacco (without lime tube), bearing a brand name ¹⁶[with declared retail sale price]	¹⁴[0.36R per unit] ^[helldodold[71%]^helldod]
¹⁶[5A.	2401	Unmanufactured tobacco (without lime tube)– bearing a brand name, other than goods covered under S. No. 5 above	71%]
6.	2401	Unmanufactured tobacco (with lime tube), bearing a brand name, ¹⁶[with declared retail sale price]	¹⁴[0.36R per unit] ^[helldodold[65%]^helldod]
¹⁶[6A.	2401	Unmanufactured tobacco (with lime tube)– bearing a brand name, other than goods covered under S. No. 6 above	65%]
7.	2401 30 00	Tobacco refuse, bearing a brand name ¹⁶[with declared retail sale price]	¹⁴[0.32R per unit] ^[helldodold[61%]^helldod]
¹⁶[7A.	2401 30 00	Tobacco refuse, bearing a brand name, other than goods covered under S. No. 7 above	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	¹[5%+ Rs. 2076 per thousand] ^{[helldod^old[5% + Rs.1591 per thousand]helldod]}
11.	2402 20 20	Cigarettes containing tobacco other than filter cigarettes, of length exceeding 65 millimetres but not exceeding 75 millimetres	¹[5%+ Rs. 3668 per thousand][helldod ^old[5% + Rs.2876 per thousand]helldod]
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	¹[5%+ Rs. 2076 per thousand] ^{[helldod^old[5% + Rs.1591 per thousand]helldod]}
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	¹[5%+ Rs. 2747 per thousand] ^{[helldod^old[5% + Rs.2126 per thousand]helldod]}
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	¹[5%+ Rs. 3668 per thousand] ^{[helldod^old[5% + Rs.2876 per thousand]helldod]}
15.	2402 20 90	Other cigarettes containing tobacco	¹[36%+ Rs. 4170 per thousand] ^{[helldod^old[5% + Rs.4170 per thousand]helldod]}
16.	2402 90 10	Cigarettes of tobacco substitutes	Rs.4006 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 ¹⁶[with declared retail sale price]	¹⁴[0.36R per unit] ^[helldodold[72%]^helldod]
¹⁶[19A.	2403 11 10	'Hookah' or 'gudaku' tobacco, bearing a brand name, other than goods covered under S. No. 19 above	72%]
20.	2403 11 10	Tobacco used for smoking 'hookah' or 'chilam' commonly known as 'hookah' tobacco or 'gudaku' not bearing a brand name ¹⁶[with declared retail sale price]	¹⁴[0.12R per unit] ^[helldodold[17%]^helldod]
¹⁶[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	17%]
21.	2403 11 90	Other water pipe smoking tobacco not bearing a brand name.¹⁶[with declared retail sale price]	¹⁴[0.08R per unit] ^[helldodold[11%]^helldod]
¹⁶[21A.	2403 11 90	Other water pipe smoking tobacco, not bearing a brand name, other than goods covered under S. No. 21 above	11%]
22.	2403 19 10	¹⁷[Smoking mixtures for pipes and cigarettes, with declared retail sale price]^[helldodold[Smoking mixtures for pipes and cigarettes]^helldod]	¹⁴[0.69R per unit] ^[helldodold[290%]^helldod]
¹⁶[22A.	2403 19 10	Smoking mixtures for pipes and cigarettes, other than goods covered under S. No. 22 above	290%]
23.	2403 19 90	Other smoking tobacco bearing a brand name ¹⁶[with declared retail sale price]	¹⁴[0.28R per unit] ^[helldodold[49%]^helldod]
¹⁶[23A.	2403 19 90	Other smoking tobacco bearing a brand name, other than goods covered under S. No. 23 above	49%]
24.	2403 19 90	Other smoking tobacco not bearing a brand name ¹⁶[with declared retail sale price]	¹⁴[0.08R per unit] ^[helldodold[11%]^helldod]
¹⁷[24A.	2403 19 90	Other smoking tobacco, not bearing a brand name, other than goods covered under S. No. 24 above	11%
24B.	2403 91 00	“Homogenised” or “reconstituted” tobacco, bearing a brand name with declared retail sale price	0.36 R per unit
24C.	2403 91 00	“Homogenised” or “reconstituted” tobacco, bearing a brand name, other goods covered under S. No. 24 B above	72%]
^[helldodold[¹⁵[24A	2403 91 00	“Homogenised” or “reconstituted” tobacco, bearing a brand name	0.36R per unit]]^helldod]
25.	¹⁴[2404 11 00] ^[helldodold[¹²[2403 91 00 or 2404 11 00]]^helldod] ^{[helldod old}[2403 91 00]^helldod]	"Homogenised" or "reconstituted" tobacco, bearing a brand name	72%
26.	2403 99 10	¹⁷[Chewing tobacco (without lime tube), with declared retail sale price] ^[helldodold[Chewing tobacco (without lime tube)]^helldod]	¹⁴[0.56R per unit] ^[helldodold[160%]^helldod]
¹⁶[26A.	2403 99 10	Chewing tobacco (without lime tube), other than goods covered under S. No. 26 above	160%]
27.	2403 99 10	¹⁷[Chewing tobacco (with lime tube), with declared retail sale price] ^[helldodold[Chewing tobacco (with lime tube)]^helldod]	¹⁴[0.56R per unit] ^[helldodold[142%]^helldod]
¹⁶[27A.	2403 99 10	Chewing tobacco (with lime tube), other than goods covered under S. No. 27 above	142%]
28.	2403 99 10	¹⁷[Filter khaini, with declared retail sale price] ^[helldodold[Filter khaini]^helldod]	¹⁴[0.56R per unit] ^[helldodold[160%]^helldod]
¹⁶[28A.	2403 99 10	Filter khaini, other than goods covered under S. No. 28 above	160%]
29.	2403 99 20	¹⁷[Preparations containing chewing tobacco, with declared retail sale price]^[helldodold[Preparations containing chewing tobacco]^helldod]	¹⁴[0.36R per unit]^[helldodold[72%]^helldod]
¹⁶[29A.	2403 99 20	Preparations containing chewing tobacco, other than goods covered under S. No. 29 above	72%]
30.	2403 99 30	¹⁷[Jarda scented tobacco, with declared retail sale price] ^[helldodold[Jarda scented tobacco]^helldod]	¹⁴[0.56R per unit] ^[helldodold[160%]^helldod]
¹⁶[30A.	2403 99 30	Jarda scented tobacco, other than goods covered under S. No. 30 above	160%]
31.	2403 99 40	¹⁷[Snuff, with declared retail sale price]^[helldodold[Snuff]^helldod]	¹⁴[0.36R per unit] ^[helldodold[72%]^helldod]
¹⁶[31A.	2403 99 40	Snuff, other than goods covered under S. No. 31 above	72%]
32.	2403 99 50	¹⁷[Preparations containing snuff, with declared retail sale price] ^[helldodold[Preparations containing snuff]^helldod]	¹⁴[0.36R per unit] ^[helldodold[72%]^helldod]
¹⁶[32A.	2403 99 50	Preparations containing snuff, other than goods covered under S. No. 32 above	72%]
33.	2403 99 60	Tobacco extracts and essence bearing a brand name ¹⁶[with declared retail sale price]	¹⁴[0.36R per unit] ^[helldodold[72%]^helldod]
¹⁶[33A.	2403 99 60	Tobacco extracts and essence, bearing a brand name, other than good covered under S. No. 33 above	72%]
34.	2403 99 60	Tobacco extracts and essence not bearing a brand name, ¹⁶[with declared retail sale price]	¹⁴[0.36R per unit] ^[helldodold[65%]^helldod]
¹⁶[34A.	2403 99 60	Tobacco extracts and essence, not bearing a brand name, other than goods covered under S. No. 34 above	65%]
35.	2403 99 70	¹⁷[Cut tobacco, with declared retail sale price] ^[helldodold[Cut tobacco]^helldod]	¹⁴[0.14R per unit] ^[helldodold[20%]^helldod]
¹⁶[35A.	2403 99 70	Cut tobacco, other than goods covered under S. No. 35 above	20%]
36.	2403 99 90	¹⁷[Pan masala containing tobacco 'Gutkha', with declared retail sale price] ^[helldodold[Pan masala containing tobacco Gutkha]^helldod]	¹⁴[0.61R per unit] ^[helldodold[204%]^helldod]
¹⁶[36A.	2403 99 90	Pan masala containing tobacco 'Gutkha', other than goods covered under S. No. 36 above	204%]
^[helldodold[¹⁵[36A	2403 99 90	All goods, other than pan masala containing tobacco 'gutkha', bearing a brand name	0.43R per unit]]^helldod]
¹⁶[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	89%]
^[helldodold[¹⁵[36B	2403 99 90	All goods, other than pan masala containing tobacco 'gutkha', not bearing a brand name	0.43R per unit]]^helldod]
37.	¹⁴[2404 11 00, 2404 19 00] ^[helldodold[¹²[2403 99 90 or 2404 11 00 or 2404 19 00]]^helldod] ^{[helldod old}[2403 99 90]^helldod]	All goods, other than pan masala containing tobacco 'gutkha', bearing a brand name	96%
38.	¹⁴[2404 11 00, 2404 19 00] ^[helldodold[¹²[2403 99 90 or 2404 11 00 or 2404 19 00]]^helldod] ^{[helldod old}[2403 99 90]^helldod]	All goods, other than pan masala containing tobacco 'gutkha', not bearing a brand name	89%
39.	2701	Coal; briquettes, ovoids and similar solid fuels manufactured from coal.	Rs.400 per tonne
40.	2702	Lignite, whether or not agglomerated, excluding jet	Rs.400 per tonne
41.	2703	Peat (including peat litter), whether or not agglomerated	Rs.400 per tonne
⁷[“41A	27	¹³[Coal rejects supplied to 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] ^{[helldod old}[Coal rejects supplied by a coal washery, arising out of coal on which compensation cess has been paid ⁸[and] ^old[and no] input tax credit thereof has not been availed by any person.]^helldod]	NIL”;
“42B	87	Fuel Cell Motor Vehicles	NIL”;]
²[42.]	*8702 10 8702 20 8702 30 8702 90	¹⁰[Motor vehicles for the transport of not more than 13 persons, including the driver, other than the vehicles of the description mentioned in S. No. 50 and 51] ^{[helldod old}[Motor vehicles for the transport of *[not more than 13] persons, including the driver]^helldod]	15%
⁵[42A.	87	All o ld and used motor vehicles Explanation : Nothing contained in this en try 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 .	NIL]
43.	⁶[8702 or 8703] ^[helldod ^old[8703] helldod]	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
44.	8703 10 10, 8703 80	Electrically operated vehicles, including three wheeled electric motor vehicles.	NIL
45.	8703	Three wheeled vehicles	NIL
46.	8703	¹⁰[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”, shall be substituted ;] ^{[helldod old}[Cars for physically handicapped persons, subject to the following conditions: a) 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 are capable of being used by the physically handicapped persons; and b) the buyer of the car gives an affidavit that he shall not dispose of the car for a period of five years after its purchase.]^helldod]	NIL
47.	³[8703 40,8703 60] ^[helldod ^old[8703 40, 8703 50,] helldod]	³[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 (b) Three wheeled vehicles (c) Motor vehicles of engine capacity not exceeding 1200cc and of length not exceeding 4000 mm (d) Motor vehicles other than those mentioned at (a), (b) and (c) above. 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.] ^[helldod ^old[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 b) Three wheeled vehicles c) 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.] helldod]	³[NIL NIL NIL 15%] ^[helldod ^old[NIL] helldod]
48.	³[8703 50, 8703 70] ^[helldod ^old[8703 60, 8703 70] helldod]	³[Following Vehicles, with both compression-ignition internal combustion piston engine [diesel-or semi diesel] 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 (b) Three wheeled vehicles (c) Motor vehicles of engine capacity not exceeding 1500 cc and of length not exceeding 4000 mm (d) Motor vehicles other than those mentioned at (a), (b) and (c) above. 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.] ^[helldod ^old [Following Vehicles, with both compression -ignition internal combustion piston engine [ diesel-or semi diesel ) 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 b) Three wheeled vehicles c) 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.] helldod]	³[NIL NIL NIL 15%] ^[helldod ^old [NIL] helldod]
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.	¹⁰[8702, 8703 21 or 8703 22] ^{[helldod old}[8703 21 or 8703 22]^helldod]	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.	1%
51.	¹⁰[8702, 8703 31] ^{[helldod old}[8703 31]^helldod]	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.	3%
3[52	8703	Motor vehicles of engine capacity not exceeding 1500 cc	³[17%]
52A	8703	Motor vehicles of engine capacity exceeding 1500 cc other than motor vehicles specified against entry at S. No 52B	³[20%]
52B	8703	¹⁷[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.] ^{[helldod old}[Motor vehicles of engine capacity exceeding 1500 cc, popularly known as Sports Utility Vehicles (SUVs) including utility vehicles. Explanation. - For the purposes of this entry, SUV includes a motor vehicle of length exceeding 4000 mm and having ground clearance of 170 mm. and above]^helldod]	³[22%][helldod
^old[52.	^old2[8703]	^old[All goods other than those mentioned at S. Nos. 43 to 51 above]	^old[15%]helldod]
53.	8711	Motorcycles of engine capacity exceeding 350 cc.	3%
54.	¹²[8802 or 8806] ^{[helldod old}[8802]^helldod]	Other aircraft (for example, helicopters, aeroplanes), for personal use.	3%
55.	8903	Yacht and other vessels for pleasure or sports	3%
56.	Any chapter	All goods other than those mentioned at S. Nos. 1 to 55 above	Nil

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.

¹⁵[(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)]

¹⁶[(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]

¹⁵[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)]

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

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

(Mohit Tewari)
Under Secretary to the Government of India

Corrigendum Dated 30/06/2017

1. Substituted Vide: Notification No. 03/2017-Compensastion Cess (Rate) Dated 18/07/2017

2. Refer vide:-Press Release dated 30.08.17 on GST (Compensation to States) Act 2017

3.Substituted Vide: Notification No. 05/2017-Compensastion Cess (Rate) Dated 11/09/2017

4. Refer vide:-Notification No. 07/2017-Compensastion Cess (Rate) Dated 13/10/2017