Important Keyword: Notification No. 01/2024 – Compensation Cess (Rate), URC GST exemption, heading 2202, GST Compensation Cess exemption, Unit Run Canteen, URC supplies GST, GST Council, Finodha GST services,
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[F. No. 190354/94/2024-TRU]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 12th July, 2024
Notification No. 01/2024 – Compensation Cess (Rate): Seeks to provide exemption from Compensation Cess on supplies under heading 2202 by URCs to authorized customers.
Table of Contents
GST [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)]
G.S.R. (E).-In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), read with sub-section (1) of section 11 of the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017) and sub-section (1) of section 6 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), read with sub-section (2) of section 11 of the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017),
the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts supply of goods falling under the heading 2202 by a Unit Run Canteen (URC) to authorised customers, from the whole of the Goods and Services Tax Compensation Cess leviable thereon under section 8 of the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017).
Explanation.–
- In this Notification, “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).
- 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.
2. The notification shall come into force with effect from the 15th day of July, 2024.
(Nitish Karnatak)
Under Secretary
📚 Frequently Asked Questions (FAQs): Notification No. 01/2024 – Compensation Cess (Rate)
Q1: What does Notification No. 01/2024 – Compensation Cess (Rate) state?
Answer:
The notification exempts the entire Compensation Cess on goods under heading 2202 when supplied by Unit Run Canteens (URCs) to authorized customers. This exemption applies to beverages and similar goods as categorized in the Customs Tariff Act under heading 2202.
Q2: Who benefits from this GST Cess exemption?
Answer:
Authorized customers of Unit Run Canteens (URCs), primarily defense personnel and paramilitary forces, will benefit directly as the exemption lowers the total price of beverages purchased through URCs.
Q3: What goods are covered under heading 2202?
Answer:
Heading 2202 includes beverages such as:
Soft drinks,
Non-alcoholic flavored beverages,
Waters, including mineral and aerated waters with added sugar or flavoring.
Q4: When will this exemption come into effect?
Answer:
This exemption will apply from July 15, 2024, as per the official notification.
Q5: Why was this exemption introduced?
Answer:
The exemption is introduced in the public interest upon recommendations by the GST Council to reduce the burden on armed forces and government-authorized personnel.
Q6: Is this applicable to all sellers or only URCs?
Answer:
No, this exemption is specific to URCs supplying to authorized customers. Regular retailers and businesses are not covered.
Q7: What law empowers the government to issue such a notification?
Answer:
This is enacted under Section 11(1) of the CGST Act, 2017, read with provisions of the Compensation to States Act, 2017 and the Integrated GST Act.
Q8: Are there other notifications related to URC exemptions?
Answer:
Yes, multiple past notifications address URC exemptions for GST and Cess. This particular one is the latest update under Compensation Cess (Rate).
Q9: Where can I get expert assistance on GST compliance for URCs or defense canteens?
Answer:
You can get expert help and professional GST solutions from our GST Experts at www.Finodha.in or explore tailored GST Compliance services here: 👉 https://finodha.in/gst-compliance/
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📌 Summary at a Glance 📝
- 🗓 Notification Effective: July 15, 2024
- 🛒 Goods Covered: Beverages under Heading 2202
- 🎯 Exemption: Full Compensation Cess on URC Supplies
- 📌 Beneficiaries: Authorized URC Customers
- 📚 Issued By: Ministry of Finance, Government of India
🔚 Final Words
With Notification No. 01/2024 – Compensation Cess (Rate), the government has provided tax relief that recognizes the unique needs of defense personnel and authorized URC customers. For full GST support, professional guidance, and business services, always trust Finodha – your compliance partner! 🌐
Download PDF: Notification No. 01/2024 – Compensation Cess (Rate)
More Information: https://taxinformation.cbic.gov.in/
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