Govt may levy commodity-wise rate slab for GST compensation cess

The government may levy a proposed Goods and Services Tax (GST) compensation cess commodity-wise in a rate slab, according to an official privy to the GST Council meeting which is underway, reports CNBC-TV18’s Sapna Das.

The aim is to protect revenue base and the proposed compensation cess is a revenue raising measure for states, the official said. The proposed GST compensation cess will be phased out after five years and rate may be increased.

Under the proposal, the proceeds of the cess will go states, the official said. Under the mechanism goods such as tobacco and SUVs will experience a high cess.

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