Important Keyword: SCHEDULE of the GST (Compensation To States) Act 2017, GST, CGST, IGST.
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Table of Contents
SCHEDULE of the Goods And Services Tax (Compensation To States) Act, 2017.
[See section 8 (2)]
1. In this Schedule, reference to a “tariff item”, “heading”, “sub-heading” and “Chapter”, wherever they occur, shall mean respectively a tariff item, heading, sub-heading and Chapter in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).
2. The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), 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 Schedule.
S. No. | Description of supply of goods or services | Tariff item, heading, sub-heading, Chapter, or supply of goods or services, as the case may be | The maximum rate at which goods and services tax compensation cess may be collected |
| (1) | (2) | (3) | (4) |
| 1. | Pan Masala. | 2106 90 20 | One hundred and thirty-five per cent. ad valorem . |
| 2. | Tobacco and manufactured tobacco substitutes, including tobacco products. | 24 | Fifteen per cent. ad valorem. |
| 3. | Coal, briquettes, ovoids and similar solid fuels manufactured from coal, lignite, whether or not agglomerated, excluding jet, peat (including peat litter), whether or not agglomerated. | 2701, 2702 or 2703 | Four hundred rupees per tonne. |
| 4. | Aerated waters. | 2202 10 10 | Fifteen per cent. ad valorem. |
| 1 [4A | Motor vehicles for the transport of not more than thirteen persons, including the driver. | 8702 10, 8702 20, 8702 30 or 8702 90 | Twenty-five per cent. ad valorem .] |
| 5. | Motor cars and other motor vehicles principally designed for the transport of persons (other than motor vehicles for the transport of ten or more persons, including the driver), including station wagons and racing cars. | 8703 | 2 [Twenty-five per cent. ad valorem ] |
| 6. | Any other supplies. | Fifteen per cent. ad valorem . |
1. Inserted (w.e.f. 02.09.2017) by s.2 of the Goods and Services Tax (Compensation to States) Amendment Act, 2017 (No. 9 of 2017).
2. Substituted (w.e.f. 02.09.2017) by s.2 of the Goods and Services Tax (Compensation to States) Amendment Act, 2017 (No. 9 of 2017).
Frequently Asked Questions
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What is the SCHEDULE of the GST (Compensation To States) Act 2017?
The SCHEDULE of the GST (Compensation To States) Act 2017 outlines the framework for compensating states for revenue losses due to the implementation of the Goods and Services Tax (GST).
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How does the SCHEDULE of the GST (Compensation To States) Act 2017 benefit the states?
The SCHEDULE provides a mechanism for states to receive compensation for any shortfall in revenue, ensuring financial stability during the transition to GST.
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What types of revenue are covered under the SCHEDULE of the GST (Compensation To States) Act 2017?
The SCHEDULE covers revenue losses from the state sales tax, value-added tax, and other indirect taxes that were subsumed by GST.
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How is the compensation calculated in the SCHEDULE of the GST (Compensation To States) Act 2017?
Compensation is calculated based on the revenue growth rate, with states receiving 100% compensation for revenue losses up to a certain threshold.
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What is the duration of the compensation provided in the SCHEDULE of the GST (Compensation To States) Act 2017?
The compensation is provided for a period of five years from the implementation date of GST, ensuring states are supported during this transition.
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Who is responsible for disbursing the compensation outlined in the SCHEDULE of the GST (Compensation To States) Act 2017?
The central government is responsible for disbursing compensation to the states as per the provisions laid out in the SCHEDULE.
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Can states appeal for additional compensation beyond what is specified in the SCHEDULE of the GST (Compensation To States) Act 2017?
States can request additional compensation; however, any adjustments are subject to review and approval based on the provisions of the Act.
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What steps must states take to claim compensation under the SCHEDULE of the GST (Compensation To States) Act 2017?
States must submit their claims to the GST Council, providing necessary documentation and data demonstrating revenue losses as specified in the SCHEDULE.
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How does the SCHEDULE of the GST (Compensation To States) Act 2017 ensure transparency in the compensation process?
The SCHEDULE mandates regular reviews and reports, ensuring that the compensation process is transparent and accountable to the public and stakeholders.
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What happens after the five-year compensation period stated in the SCHEDULE of the GST (Compensation To States) Act 2017?
After the five-year period, states will need to rely on their own revenue generation strategies, as the compensation mechanism will cease as per the SCHEDULE’s provisions.
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