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[F. No. S-31011/28/2016-ST-I DOR]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 28th June, 2017 7 Ashadha, Saka 1939
Notification No. 01/2017 – Goods and Services Tax Compensation: Seeks to appoint the 1st day of July, 2017, as the date on which all the provisions of Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017) shall come into force
GST: [To be published in Part II, Section 3, Sub-section (i) of the Official Gazette of India, Extraordinary]
G.S.R. …..(E).— In exercise of the powers conferred by sub-section (3) of section 1 of the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017), the Central Government hereby appoints the 1st day of July, 2017, as the date on which all the provisions of the said Act shall come into force.
(Mahendra Nath)
Under Secretary to the
Government of India
📚 Frequently Asked Questions (FAQs): Notification No. 01/2017 - GST Compensation
Q1. What is Notification No. 01/2017 GST Compensation?
Answer: It is a notification that brought the GST Compensation to States Act, 2017 into force from 1 July 2017.
The notification was issued by the Central Government under Section 1(3) of the Act and served as the official commencement notification.
Q2. When was Notification No. 01/2017 issued?
Answer: The notification was issued on 28 June 2017.
It was published just a few days before GST implementation and became effective from 1 July 2017.
Q3. What is the effective date mentioned in the notification?
Answer: The effective date is 1 July 2017.
From this date, all provisions of the Compensation to States Act became operational.
Q4. Why was the Compensation Act needed?
Answer: It was introduced to protect states against possible revenue losses due to GST.
The Act provided a mechanism through which states could receive compensation if GST collections fell below protected levels.
Q5. Does this notification apply directly to businesses?
Answer: No, not directly.
The notification primarily affected the Centre and State Governments by activating the compensation framework.
Q6. What is GST Compensation Cess?
Answer: GST Compensation Cess is a special levy on certain goods and services.
The proceeds are used to compensate states for revenue losses arising from GST implementation.
Q7. Which law was activated through this notification?
Answer: The Goods and Services Tax (Compensation to States) Act, 2017.
The notification brought every provision of the Act into force.
Q8. Which authority issued this notification?
Answer: The Central Government through the Ministry of Finance, Department of Revenue.
The notification was issued under powers granted by the Compensation Act.
Q9. Is Notification No. 01/2017 still relevant today?
Answer: Yes, from a legal and historical perspective.
It marks the official commencement of the Compensation to States Act and remains an important GST milestone.
Q10. Did this notification create any GST return filing requirement?
Answer: No.
The notification did not introduce any new GST return, registration, or compliance requirement for ordinary taxpayers.
Q11. What role did this notification play in GST implementation?
Answer: It ensured that the compensation framework became operational simultaneously with GST.
This helped secure state participation and confidence in the GST regime.
Q12. What section empowered the Government to issue this notification?
Answer: Section 1(3) of the GST (Compensation to States) Act, 2017.
This provision specifically authorized the Government to appoint the commencement date.
Download PDF: Notification No. 01/2017 - GST Compensation
More Information: https://taxinformation.cbic.gov.in/
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