IndiaAudit Lens

Section 11 of the GST (Compensation to States) Act, 2017

From the IndiaAuditLens Law Library

GST›GST (Compensation to States) Act, 2017

At a glance

Bars, duties and time limits

11(2) provisoInput tax credit for cess on goods and services under section 8 must be used only to pay cess on goods and services under that section.

Procedure, powers and definitions

11(1)CGST provisions and rules, including assessment, input tax credit, non-levy, short levy, interest, appeals, offences and penalties, apply as far as may be, with necessary adaptations, to intra-State cess under section 8.
11(2)IGST provisions and rules, including assessment, input tax credit, non-levy, short levy, interest, appeals, offences and penalties, apply with necessary adaptations to inter-State cess under section 8.
11(1)–(2)The law does not settle which adaptations of the CGST or IGST provisions and rules are permitted while preserving each limb’s scope and qualifications.

CGST provisions and rules apply to intra-State cess under section 8, as far as may be and with necessary adaptations. IGST provisions and rules apply with necessary adaptations to inter-State cess. Both extend to assessment, credit, non-levy, short levy, interest, appeals, offences and penalties. Cess credit may be used only towards cess under section 8. The law does not settle which adaptations are permitted.^[1]

Quick facts

Section 11, GST (Compensation to States) Act, 2017

Other provisions relating to cess

Provision
Act	Goods and Services Tax (Compensation to States) Act, 2017
Section title	Other provisions relating to cess
Related provisions
Sections	8, 10, 12
Structure 11(1)Intra-State imported provision scope 11(1)Intra-State incorporation adaptation — Act provision 11(2)Inter-State imported provision scope 11(2)Inter-State incorporation adaptation — Act provision 11(2) provisoCess-credit payment restriction 11(1)Imported CGST Rules adaptation 11(2)Imported IGST Rules adaptation
Source
Law text	CBIC tax information portal, served on 17 September 2026^[1]

Text

The text below is the section as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.^[1] The Act as published in the Gazette of India is the legal source.

Section 11, verbatim (show)

Section 11. Other provisions relating to cess .

(1)The provisions of the Central Goods and Services Tax Act, and the rules made there under, including those relating to assessment, input tax credit, non-levy, short-levy, interest, appeals, offences and penalties, shall, as far as may be, mutatis mutandis, apply, in relation to the levy and collection of the cess leviable under section 8 on the intra-State supply of goods and services, as they apply in relation to the levy and collection of central tax on such intra-State supplies under the said Act or the rules made there under.

(2)The provisions of the Integrated Goods and Services Tax Act, and the rules made there under, including those relating to assessment, input tax credit, non-levy, short-levy, interest, appeals, offences and penalties, shall, mutatis mutandis, apply in relation to the levy and collection of the cess leviable under section 8 on the inter-State supply of goods and services, as they apply in relation to the levy and collection of integrated tax on such inter-State supplies under the said Act or the rules made there under:

Provided that the input tax credit in respect of cess on supply of goods and services leviable under section 8, shall be utilised only towards payment of said cess on supply of goods and services leviable under the said section.

Questions to answer on the file

Questions a reviewer answers from the engagement file, grouped by the part of the section they come from. They describe what the section asks; they do not decide it.

Intra-State imported provision scope 11(1)

Questions to answer on the file3 questions

Does the cess concern the intra-State supply under 8?
Is the actual imported CGST Act provision and operative law state available for this receiving clause?
Is the particular imported CGST rule and version identified?

Ticks stay in this browser only.

Intra-State incorporation adaptation — Act provision 11(1)

Questions to answer on the file2 questions

Are the actual imported Act provision, receiving clause and proposed Act adaptation available?
Is the proposed adaptation of the imported Act provision permissible under the reserved standard?

Ticks stay in this browser only.

Inter-State imported provision scope 11(2)

Questions to answer on the file3 questions

Does the cess concern the inter-State supply under 8?
Is the actual imported IGST Act provision and operative law state available for this receiving clause?
Is the particular imported IGST rule and version identified?

Ticks stay in this browser only.

Inter-State incorporation adaptation — Act provision 11(2)

Questions to answer on the file2 questions

Are the actual imported Act provision, receiving clause and proposed Act adaptation available?
Is the proposed adaptation of the imported Act provision permissible under the reserved standard?

Ticks stay in this browser only.

Cess-credit payment restriction 11(2) proviso

Questions to answer on the file2 questions

Is the credit input tax credit in respect of cess leviable under 8?
Is its utilisation exclusively towards payment of that section 8 cess?

Ticks stay in this browser only.

Imported CGST Rules adaptation 11(1)

Questions to answer on the file2 questions

Is the particular imported CGST rule/version for this clause?
Is the proposed adaptation of that imported CGST rule permissible within this clause’s exact limits?

Ticks stay in this browser only.

Imported IGST Rules adaptation 11(2)

Questions to answer on the file2 questions

Is the particular imported IGST rule/version for this clause?
Is the proposed adaptation of that imported IGST rule permissible within this clause’s exact limits?

Ticks stay in this browser only.

Provisions connected to Section 11
Provision	Connection	Words that tie them
Section 8	this provision requires Section 8	cess leviable under section 8

Circulars and notifications

Circulars and notifications in the CBIC repository that cite this section, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.

Circulars (6)

Number	Date	Subject
Circular No. 238/32/2024-GST	15 October 2024	Clarification of various doubts related to Section 128A of the CGST Act, 2017. amended by a later instrument
Circular No. 192/04/2023-GST	17 July 2023	Clarification on charging of interest under section 50(3) of the CGST Act, 2017, in cases of wrong availment of IGST credit and reversal thereof.
Circular No. 125/44/2019-GST	18 November 2019	Seeks to clarify the fully electronic refund process through FORM GST RFD-01 and single disbursement. amended by a later instrument
Circular No. 68/42/2018-GST	5 October 2018	Notifications issued under CGST Act, 2017 applicable to Goods and Services Tax (Compensation to States) Act, 2017
Circular No. 45/19/2018-GST	30 May 2018	Clarification on refund related issues. Rescinded vide Circular No. 125/44/2019 - GST dated 18.11.2019. rescinded by a later instrument
Circular No. 1/01/2017-Compensation Cess	26 July 2017	Seeks to provide clarification regarding applicability of section 16 of the IGST Act, 2017, relating to zero rated supply for the purpose of Compensation Cess on exports.

Notifications (6)

Number	Date	Subject
Notification No. 01/2025-Compensation Cess (Rate)	16 January 2025	Seeks to prescribe Compensation cess rate of 0.1% on supply of taxable goods by a registered supplier to a registered recipient for export subject to specified conditions. made under this section
Notification No. 01/2024-Compensation Cess (Rate)	12 July 2024	Seeks to provide exemption from Compensation Cess on supplies under heading 2202 by URCs to authorised customers. made under this section
Notification No. 01/2019-Compensation Cess (Rate)	29 June 2019	Exempts any supply of goods by a retail outlet established in the departure area of an international airport, beyond the immigration counters, to an outgoing international tourist. made under this section
Notification No. 01/2018-Compensation Cess	14 November 2018	Notification No. 1/2018 dated 14.11.2018 which notifies the list of Acts of Central Government and State Governments under which specified taxes are being subsumed into the Goods and Services Tax.
Notification No. 26/2018-Central Tax	13 June 2018	Seeks to make amendments (Fifth Amendment, 2018) to the CGST Rules, 2017.
Notification No. 04/2017-Compensation Cess (Rate)	20 July 2017	Seeks to exempt intra-State supplies of second hand goods received by a registered person, dealing in buying and selling of second hand goods and who pays the goods and services tax compensation cess on the value of outward supply of such second hand goods, as determined under sub-rule (5) of rule 32 of the Central Goods and Services Tax Rules, 2017, from any supplier, who is not registered, from the whole of the goods and services tax compensation cess leviable thereon under section 8 of the Goods and Services Tax (Compensation to States) Act, read with sub-section (4) of Section 9 of the Central Goods and Services Tax Act made under this section

Unsettled questions

The words of section 11 do not answer these questions. Where one decides a matter on the file, the answer depends on the position taken on it.

Which adaptations of the identified imported CGST provision are permitted by Cess11(1) while preserving its exact qualification and scope?
Which adaptations of the identified imported IGST provision are permitted by Cess11(2) while preserving its exact qualification and scope?
Which necessary adaptations of the identified imported rule are permitted by this receiving clause, preserving its express scope, qualifications and exclusions?
Which necessary adaptations of the identified imported rule are permitted by this receiving clause, preserving its express scope, qualifications and exclusions?

See also

Section 8 of the GST (Compensation to States) Act, 2017: levy and collection of cess
Section 10 of the GST (Compensation to States) Act, 2017: crediting proceeds of cess to Fund
Section 12 of the GST (Compensation to States) Act, 2017: power to make rules

References

Central Board of Indirect Taxes and Customs. "Section 11. Other provisions relating to cess". Goods and Services Tax (Compensation to States) Act, 2017, CBIC tax information portal. Retrieved 17 September 2026.

External links

GST (Compensation to States) Act, 2017, Section 11 on the CBIC tax information portal