GST Compensation Cess
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GST Compensation Cess is levied by the GST Act 2017.
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The object of levying this cess is to compensate the states for the loss of revenue arising due to the implementation of GST on 1st July 2017 for a period of five years or such period as recommended by the GST Council.
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Compensation cess is levied over and above the amount of GST charged in relation to a particular supply.
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The calculation is similar to that of GST i.e. the prescribed rate is applied to the transaction value given under section 15 of the CGST Act 2017 to arrive at the cess liability.