Input Tax Credit of GST Compensation Cess

Input Tax Credit of GST Compensation Cess :

Input Tax Credit of GST Compensation Cess will be available – section 11(2) of GST Cess Act.

The input tax credit in respect of GST Compensation Cess on supply of goods and services leviable shall be utilised only towards payment of GST Compensation Cess on supply of goods and services leviable under section 8 of GST Cess Act – proviso to section 11(3) of GST Cess Act.

Pan Masala – 150%

Tobacco and tobacco products – Rs 4,170 rupees per thousand sticks or 290% ad valorem or a combination thereof

Coal, briquettes, ovoids and similar solid fuels manufactured from coal – Rs 400 per tonne Aerated waters – 15%

Motor cars and motor vehicles for transport of less than ten persons, including drive and also on station wagons and racing cars – 15%

All Other supplies – 15%

Other supplies may be exempt by notification – Though the schedule to GST (CSLR) Act imposes 15% GST on ‘All Other Supplies’, this is only an enabling provision. Mostly and hopefully, there will be no GST Compensation on supplies other than SIN goods or luxury goods.