Ministry: 
Finance
  • Introduced
    Lok Sabha
    Dec 22, 2017
  • Passed
    Lok Sabha
    Dec 27, 2017
  • Passed
    Rajya Sabha
    Deemed to be passed
  • The Goods and Services Tax (Compensation to States) Amendment Bill, 2017 was introduced in Lok Sabha by Mr. Arun Jaitley, Minister of Finance on December 22, 2017.  The Bill amends the Goods and Services Tax (Compensation to States) Act, 2017 and replaces an Ordinance promulgated in September 2017.  
  • The Act allows the central government to notify the rate of the Goods and Services Tax (GST) Compensation Cess on items such as pan masala, coal, aerated drinks, and tobacco, subject to certain caps.  The amount received by levying the GST Compensation Cess is used to compensate states for any loss in revenue following the implementation of GST.
  • Increase in cap on GST Compensation Cess:  The Bill amends the 2017 Act to increase the cap on the GST Compensation Cess levied on motor vehicles from 15% to 25%.  

 

DISCLAIMER: This document is being furnished to you for your information.  You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research (“PRS”).  The opinions expressed herein are entirely those of the author(s).  PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete.  PRS is an independent, not-for-profit group.  This document has been prepared without regard to the objectives or opinions of those who may receive it.