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GST compensation Cess 2024
October 5 , 2024
16 hrs 0 min
31
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- The Goods and Services Tax (GST) Council has set up a 10-member GoM, chaired by Minister of State for Finance Pankaj Chaudhary.
- It is tasked to decide on the taxation of luxury, sin and demerit goods once the compensation Cess ends in March 2026.
- In the GST regime, compensation cess at varied rates is levied on luxury, sin and demerit goods over and above the 28% tax.
- The proceeds from the cess were originally planned for five years after GST roll-out or till June 2022.
- This cess is used to compensate States for revenue loss incurred by them post the introduction of GST.
- In 2022, the Council decided to extend the levy till March 2026.
- Currently, GST is a four-tier tax structure with slabs at 5, 12, 18, and 28%.
- However, as per GST law, tax of up to 40% can be imposed on goods and services.
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