GOODS AND SERVICES TAX (COMPENSATION TO STATES) ACT, 2017
Section 8: Levy and collection of cess
(1) There shall be levied a cess on such intra-State supplies of goods or services or both, as provided for in section 9 of the Central both, Goods and Service Tax Act, and such inter- State supplies of goods or services or both as provided for in section 5 of the Integrated Goods and Services Tax Act, and collected in such manner as may be prescribed, on the recommendations of the Council, for the purposes of providing compensation to the States for loss of revenue arising on account of implementation of the goods and services tax with effect from the date from which the provisions of the Central Goods and Services Tax Act is brought into force, for a period of five years or for such period as may be prescribed on the recommendations of the Council:
Provided that no such cess shall be leviable on
supplies made by a taxable person who has decided to opt for composition levy
under section 10 of the Central Goods and Services Tax Act.
(2) The cess shall be levied on such supplies of goods and services as are
specified in column (2) of the Schedule, on the basis of value, quantity or on
such basis at such rate not exceeding the rate set forth in the corresponding
entry in column (4) of the Schedule, as the Central Government may, on the
recommendations of the Council, by notification in the
Official Gazette, specify:
Provided that where the cess is chargeable on any supply of goods or services or
both with reference to their value, for each such supply the value shall be
determined under section 15 of the Central Goods and Services Tax Act for all
intra-State and inter-State supplies of goods or services or both:
Provided further that the cess on goods imported into India shall be levied and
collected in accordance with the provisions of
section 3 of the Customs Tariff
Act, 1975, at the point when duties of customs are levied on the said goods
under section 12 of the Customs Act, 1962, on a value determined under the
Customs Tariff Act, 1975.