Cess

From February 2026, India replaces GST compensation cess with excise and health cess on tobacco and pan masala, introducing capacity-based duties and higher cigarette taxes

Finance Minister Nirmala Sitharaman said the proposed Health and National Security Cess is expected to act as a deterrent to pan masala consumption and will not be levied on essential commodities

Automotive dealer's body FADA has written to Finance Minister Nirmala Sitharaman seeking help regarding the levy and treatment of cess balances. In a letter to the minister, the Federation of Automobile Dealers Associations (FADA) noted that while GST 2.0 subsumes the earlier compensation cess regime for automobiles, the dealers today hold significant, validly-availed cess balances in their electronic credit ledgers. Once no further cess liability arises, these balances cannot be utilised against CGST/SGST/IGST under the current law, FADA President C S Vigneshwar said. Without a transitional pathway, credits risk lapsing, creating an unintended, permanent loss and a sharp working-capital shock for compliant MSME dealerships, he added. With the 56th GST Council decision, the levy of compensation cess on motor vehicles has been subsumed into GST rates, and hence no fresh cess liability will arise on outward supplies, he said. Vigneshwar sought that the balance lying in the compensat

India's GST regime is very complicated and there is a need to simplify this biggest indirect tax reform introduced in 2017, former Chief Economic Adviser Arvind Subramanian said on Friday. "GST regime is very complicated. There are 50 (different) cess rates and if I look at other things... it might go up to 100 rates," he said at the event organised by the Centre for Policy Research here. Talking about other challenges, he said, some people have pointed out to me that the goods and services tax (GST) has encouraged excessive tax demands. Observing tax terrorism and excessive demands were always features in the Indian system, he said, these have gone up under the GST. Tax terrorism that GST has introduced is something that needs to be focussed on, he added. Emphasising the need for rate rationalisation, he said there is a need for GST simplification and increased revenue. GST was rolled out on July 1, 2017 heralding the start of 'One Nation, One Tax, One Market'. It subsumed at l

As on March 31, only Rs 64,193 crore was spent on workers' welfare, while Rs 47,800 crore remained unutilised

Cites fiscal federalism to highlight power of states to tax

Public health groups along with doctors and economists have urged the Goods and Services Tax Council to increase compensation cess on all tobacco products in order to generate additional revenue for the government. They argued that such as a step of higher taxation will also motivate millions of tobacco users to quit and prevent youngsters from initiating tobacco use. According to them, tax revenue from tobacco could significantly contribute to the increased need for resources and augmenting the health infrastructure. "There has not been any major increase in tobacco taxes since the introduction of the Goods and Services Tax (GST) in July 2017 and all tobacco products have become more affordable over the past three years," Bhavna Mukhopadhyay, Chief Executive, Voluntary Health Association of India, said. The total tax burden (taxes as a percentage of final tax inclusive of retail price) is only about 52.7 per cent for cigarettes, 22 per cent for 'bidis' and 63.8 per cent for ...

Imports were the only exception in the otherwise strong GST numbers in the first three months of the current financial year

The circular is useful because it applies not only to the parties who litigated on the pre-import issue but also to those who did not do so

There has been a rise of 133 per cent in collection of major cess and surcharges levied by the Centre during the five year period between 2017-18 and 2022-23, as it went up to Rs 5,10,549 crore

CBDT tells I-T officials to nudge entities; move could help garner over Rs 5,000 cr

Experts say finance commission needs to provide clarity on whether cess should be shared with states

States have been concerned about increasing cases of Centre imposing cesses for garnering additional revenue

I suggest you claim refund of CVD, SAD and cess paid towards regularisation of the default under advance authorisation

The export tax on fuels and cess on domestic crude oil production are likely to add to the climate of policy uncertainty in the energy sector

The metro cess is intended to fund transport infrastrucuture projects in these cities

Govt takes its cut from the profit you earned in the markets in form of taxes. But did you know that the government also charges tax on tax? They are called cess and surcharge. Find out about them

Liquor prices in Uttar Pradesh have increased after the state government imposed a 'corona cess' from Tuesday

The share of cesses and surcharges in the gross tax revenue of the Centre has nearly doubled to 19.9 per cent in 2020-21 from 10.4 per cent in 2011-12

This should not matter much because wherever AIDC has been imposed, the basic customs duty (BCD) or excise duty has been reduced, and in any case