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[F.No.354/117/2017-TRU]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 30th June, 2017
Corrigendum to Notification No. 01/2017 - Compensation Cess (Rate)
[TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY]
G.S.R. (E).- In the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.1/2017-Compesnation Cess (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 720(E), dated the 28th June, 2017, at page 175,-
(i) in line 42, for “8702 10”, read “8702 10, 8702 20, 8702 30, 8702 90”;
(ii) in line 42, for “ten or more”, read “not more than 13”.
(Mohit Tewari)
Under Secretary to the
Government of India
📚 Frequently Asked Questions (FAQs): Corrigendum to Notification No. 01/2017 - Compensation Cess (Rate)
Q1. What is the Corrigendum to Notification No. 01/2017?
Answer: It is an official correction issued on 30 June 2017 to rectify certain entries in Notification No. 01/2017-Compensation Cess (Rate). It corrected vehicle classification and passenger-capacity wording.
Q2. Why was the corrigendum issued?
Answer: It was issued to remove ambiguity in tariff classification and vehicle descriptions before GST became effective.
Q3. Did the corrigendum change Compensation Cess rates?
Answer: No.
The corrigendum corrected classification references and wording. It did not introduce a new cess rate.
Q4. Which tariff headings were added?
Answer: The corrigendum expanded coverage from heading 8702 10 to include 8702 20, 8702 30, and 8702 90.
Q5. What passenger-capacity correction was made?
Answer: The phrase “ten or more persons” was replaced with “not more than 13 persons.”
Q6. Does a corrigendum have legal effect?
Answer: Yes.
Once officially issued, it forms part of the legal framework of the original notification.
Q7. Who should pay attention to this corrigendum?
Answer: Vehicle manufacturers, dealers, transport operators, tax consultants, and GST compliance teams.
Q8. Is the corrigendum still relevant?
Answer: Yes.
It remains relevant for historical classification analysis, audits, and legal interpretation.
Q9. Does it affect GST returns?
Answer: Indirectly, yes.
Correct classification affects tax calculation and reporting.
Q10. Is Compensation Cess separate from GST?
Answer: Yes.
Compensation Cess is an additional levy imposed on specified goods.
Q11. Can incorrect classification result in penalties?
Answer: Yes.
Incorrect classification can lead to tax demands, interest, and penalties.
Q12. What is tariff heading 8702?
Answer: It generally covers motor vehicles designed for transporting persons.
Q13. Why are tariff headings important?
Answer: Because Compensation Cess applicability depends heavily on product classification.
Download PDF: Corrigendum to Notification No. 01/2017 - Compensation Cess (Rate)
More Information: https://taxinformation.cbic.gov.in/
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