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 8, verbatim (show)
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 Goods and Services 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 there commendations of the Council, for the purposes of providing compensation to the States for loss of revenuearising 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 there commendations 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 for thin 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.
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.
Domestic levy categories 8(1)
Questions to answer on the file3 questions
Collection and notified levy period evidence 8(1)
Questions to answer on the file4 questions
Notified Schedule rate within ceiling 8(2)
Questions to answer on the file7 questions
Domestic value basis 8(2) first proviso
Questions to answer on the file3 questions
Import valuation and collection point 8(2) second proviso
Questions to answer on the file4 questions
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Section 9 of the CGST Act, 2017 | this provision requires Section 9 of the CGST Act, 2017 | section 9 of the Central Goods and Services Tax Act |
| Section 5 of the IGST Act, 2017 | this provision requires Section 5 of the IGST Act, 2017 | section 5 of the Integrated Goods and Services Tax Act |
| Section 10 of the CGST Act, 2017 | this provision exception in Section 10 of the CGST Act, 2017 | opt for composition levy under section 10 |
| Section 15 of the CGST Act, 2017 | this provision requires Section 15 of the CGST Act, 2017 | value shall be determined under section 15 |
| Schedule | this provision requires Schedule | corresponding entry in column (4) of the Schedule |
| Section 8A | this provision overridden by this provisionA | Notwithstanding anything contained in this Act |
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 (3)
| Number | Date | Subject |
|---|---|---|
| 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. 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 (21)
| Number | Date | Subject |
|---|---|---|
| Notification No. 03/2025-Compensation Cess (Rate) | 31 December 2025 | Seeks to amend Notification 01/2025- Compensation Cess Tax (Rate), to prescribe GST rates on tobacco products. made under this section |
| Notification No. 02/2025-Compensation Cess (Rate) | 17 September 2025 | Seeks to amend Notification No. 1/2017- Compensation Cess (Rate) dated 28.06.2017. made under this section |
| 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. |
| 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. |
| Notification No. 03/2023-Compensation Cess (Rate) | 26 July 2023 | Seeks to amend No. 1/2017- Compensation Cess(Rate) to implement the decisions of 50th GST Council. made under this section |
| Notification No. 02/2023-Compensation Cess (Rate) | 31 March 2023 | Seeks to further amend notification No. 1/2017-Compensation Cess (Rate), dated 28th June, 2017. made under this section |
| Notification No. 01/2023-Compensation Cess (Rate) | 28 February 2023 | Seeks to amend notification no. 1/2017- Compensation Cess (Rate), dated 28.06.2017 made under this section |
| Notification No. 01/2022-Compensation Cess | 24 June 2022 | Seeks to bring into force the Goods and Services Tax (Period of Levy and Collection of Cess) Rules, 2022 made under this section |
| Notification No. 02/2021-Compensation Cess (Rate) | 28 December 2021 | Seeks to amend Notification No 1/2017- Compensation Cess (Rate) dated 28.06.2017. made under this section |
| Notification No. 01/2021-Compensation Cess (Rate) | 30 September 2021 | Seeks to amend notification No. 1/2017- Compensation Cess(Rate). made under this section |
| Notification No. 02/2019-Compensation Cess (Rate) | 30 September 2019 | Seeks to amend notification No. 1/2017-Compensation Cess (Rate), dated 28.6.2017 on the recommendations of the GST Council in its 37th meeting dated 20.09.2019. 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. |
| Notification No. 02/2018-Compensation Cess (Rate) | 26 July 2018 | Seeks to amend Notification No. 1/2017 -Compensation Cess (Rate) dated 28.06.2017 togive effect to the recommendations of the GST Council in it's 28th meeting held on 21.07.2018 made under this section |
| Notification No. 01/2018-Compensation Cess (Rate) | 25 January 2018 | seeks to amend Notification No.1/2017-Compensation Cess (Rate). made under this section |
| Notification No. 06/2017-Compensation Cess (Rate) | 13 October 2017 | Seeks to amend notification No. 2/2017-Compensation Cess (Rate) regarding reduction in cess rates for leasing of motor vehicles purchased and leased prior to 01.07.2017. made under this section |
| Notification No. 07/2017-Compensation Cess (Rate) | 13 October 2017 | Seeks to prescribe compensation cess rate on the leasing of motor vehicles made under this section |
| Notification No. 05/2017-Compensation Cess (Rate) | 11 September 2017 | The notification amends the rates of compensation cess on various motor vehicles. made under this section |
| 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 |
| Notification No. 03/2017-Compensation Cess (Rate) | 18 July 2017 | Seeks to amend notification No. 1/2017- Compensation Cess (Rate), dated 28th, June, 2017 so as to increase the Compensation Cess rates on cigarettes as mentioned in the notification with effect from 18th, July, 2017 made under this section |
| Notification No. 01/2017-Compensation Cess (Rate) | 28 June 2017 | Seeks to notify Rates of goods and services tax compensation cess under Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017). amended by a later instrument made under this section |
| Notification No. 02/2017-Compensation Cess (Rate) | 28 June 2017 | To notify the rates of compensation cess on supply of specified services amended by a later instrument made under this section |
See also
- Section 9 of the CGST Act, 2017: levy and collection
- Section 5 of the IGST Act, 2017: levy and collection
- Section 10 of the CGST Act, 2017: composition levy
- Section 15 of the CGST Act, 2017: value of Taxable Supply
- Schedule of the GST (Compensation to States) Act, 2017:
- Section 8A of the GST (Compensation to States) Act, 2017: power not to recover cess not levied or short levied as a result of general practice
References
- Central Board of Indirect Taxes and Customs. "Section 8. Levy and collection of 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 8 on the CBIC tax information portal