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Section 8A of the GST (Compensation to States) Act, 2017

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GST›GST (Compensation to States) Act, 2017

At a glance

Procedure, powers and definitions

8ANotwithstanding the Act, the Government may, on the Council’s recommendation and by Gazette notification, direct that whole or excess cess need not be paid where it is satisfied that a generally prevalent practice caused non-levy or short levy on supplies liable to cess or a higher amount; the direction concerns supplies affected by that practice.

The Government may direct non-recovery of cess where a generally prevalent practice resulted in non-levy or short levy on supplies otherwise liable to cess or a higher amount. This power overrides the Act. It requires the Government’s satisfaction about the practice and liability, the Council’s recommendation and a Gazette notification. The direction may cover the whole cess or the excess attributable to that practice.^[1]

Quick facts

Section 8A, GST (Compensation to States) Act, 2017

Power not to recover cess not levied or short levied as a result of general practice

Provision
Act	Goods and Services Tax (Compensation to States) Act, 2017
Section title	Power not to recover cess not levied or short levied as a result of general practice
Amendments
Amendments	1 footnote in the CBIC text (table)
Related provisions
Sections	8, 9
Structure 8AActual statutory non-recovery direction 8A(b)(i)Non-levy direction measure 8A(b)(ii)Short-levy difference
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 8A, verbatim (show)

Section 8A

¹[Section 8A. Power not to recover cess not levied or short levied as a result of general practice.

Notwithstanding anything contained in this Act, if the Government is satisfied that––

(a) a practice was, or is, generally prevalent regarding levy of cess (including non-levy thereof) on any supply of goods or services or both; and

(b) such supplies were, or are, liable to,—

(i) cess, in cases where according to the said practice, cess was not, or is not being, levied; or

(ii) a higher amount of cess than what was, or is being, levied, in accordance with the said practice,

the Government may, on the recommendation of the Council, by notification in the Official Gazette, direct that the whole of the cess payable on such supplies, or, as the case may be, the cess in excess of that payable on such supplies, but for the said practice, shall not be required to be paid in respect of the supplies on which the cess was not, or is not being, levied, or was, or is being, short-levied, in accordance with the said practice.]

1. Inserted by section 157 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024.

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.

Actual statutory non-recovery direction 8A

Questions to answer on the file7 questions

Did the Central Government actually hold the specified satisfaction that the practice was generally prevalent?
Did the Central Government actually hold the specified non-levy or higher-liability satisfaction?
Has the Central Government actually issued the non-payment direction for the cess amount?
Was the direction recommended by the Council?
Was it notified in the Official Gazette?
Do these supplies fall within the supplies covered by that practice and actual direction?
Does the actual direction cover the supply period?

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Non-levy direction measure 8A(b)(i)

Questions to answer on the file2 questions

Did the practice entail no cess levy on these supplies?
Does the actual direction cover the whole otherwise payable cess for those supplies?

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Short-levy difference 8A(b)(ii)

Questions to answer on the file2 questions

What cess would otherwise be payable for the supplies but for the practice?
What cess was payable in accordance with the practice?

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Amendment history

The CBIC text carries 1 footnote. The table gives each in the source's own terms. Effective dates are as the footnotes state them.^[1]

Amendments to section 8a as footnoted in the CBIC text
Note	Change
1	Inserted by section 157 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024.^[2]

Circulars and notifications

No circular or notification in the CBIC repository is recorded as citing this section.

See also

Section 8 of the GST (Compensation to States) Act, 2017: levy and collection of cess
Section 9 of the GST (Compensation to States) Act, 2017: returns, payments and refunds

References

Central Board of Indirect Taxes and Customs. "Section 8A. Power not to recover cess not levied or short levied as a result of general practice". Goods and Services Tax (Compensation to States) Act, 2017, CBIC tax information portal, with amendment footnotes 1 to 1. Retrieved 17 September 2026.
The Finance Act (No. 2) Act, 2024. Cited in CBIC footnote 1.

External links

GST (Compensation to States) Act, 2017, Section 8A on the CBIC tax information portal