In this article you will be able to look into the rates of compensation cess as on 15 July 2021.
As per Notification No. 1/2017- Compensation Cess (Rate) dated 28 June 2017 as amended from time to time, these are the rates of compensation cess.
Rates of Compensation Cess in case of Goods
| S.No. | Chapter/ Heading/ Tariff Item | Description of Goods | Cess rate as on 1.07.2021 |
| (1) | (2) | (3) | (4) |
| 1. | 2106 90 20 | Pan masala | 60% |
| 2. | 2202 10 10 | Aerated Waters | 12% |
| 3. | 2202 10 20 | Lemonade | 12% |
| 4. | 2202 10 90 | Others | 12% |
| 5. | 22029990 | Caffeinated Beverages | 12% |
| 6. | 2401 | Unmanufactured tobacco (without lime tube) – bearing a brand name | 71% |
| 7. | 2401 30 00 | Tobacco refuse, bearing a brand name | 65% |
| 8. | 2402 10 10 | Cigar and cheroots | 21% or INR 4170 per thousand, whichever is higher |
| 9. | 2401 10 20 | Cigarillos | 21% or INR 4170 per thousand, whichever is higher |
| 10. | 2402 20 10 | Cigarettes containing tobacco other than filter cigarettes of length not exceeding 65 millimeters | 5% + INR 2076 per thousand |
| 11. | 2402 20 20 | Cigarettes containing tobacco other than filter cigarettes of length exceeding 65 millimeters but not exceeding 75 millimetres | 5% + INR 3668 per thousand |
| 12. | 2402 20 30 | Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) not exceeding 65 millimetres | 5% + INR 2076 per thousand |
| 13. | 2402 20 40 | Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 65 millimetres but not exceeding 70 millimetres | 5% + INR 2747 per thousand |
| 14. | 2402 20 50 | Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimeters or its actual length whichever is more) exceeding 70 millimetres but not exceeding 75 millimetres | 5% + INR 3668 per thousand |
| 15. | 2402 20 90 | Other cigarettes containing tobacco | 36% + INR 4170 per thousand |
| 16. | 2402 90 10 | Cigarettes of tobacco substitutes | INR 4006 per thousand |
| 17. | 2402 90 20 | Cigarillos of tobacco substitutes | 12.5 % or INR 4006 per thousand whichever is higher |
| 18. | 2402 90 90 | Other | 12.5 % or INR 4006 per thousand whichever is higher |
| 19. | 2403 11 10 | ‘Hookah’ or ‘gudaku’ tobacco bearing a brand name | 72% |
| 20. | 2403 11 10 | Tobacco used for smoking ‘hookah’ or ‘chilam’ commonly known as ‘hookah’ tobacco or ‘gudaku’ not bearing a brand name | 17% |
| 21. | 2403 11 90 | Other water pipe smoking tobacco not bearing a brand name | 11% |
| 22. | 2403 19 10 | Smoking mixtures for pipes and cigarettes | 290% |
| 23. | 2403 19 90 | Other smoking tobacco bearing a brand name | 49% |
| 24. | 2403 19 90 | Other smoking tobacco not bearing a brand name | 11% |
| 25. | 2403 91 00 | “Homogenized” or “reconstituted” tobacco, bearing a brand name | 72% |
| 26. | 2403 99 00 | Chewing tobacco (without lime tube) | 160% |
| 27. | 2403 99 10 | Chewing tobacco ( with lime tube) | 142% |
| 28. | 2403 99 10 | Filter khaini | 160% |
| 29. | 2403 99 20 | Preparations containing chewing tobacco | 72% |
| 30. | 2403 99 30 | Jarda scented tobacco | 160% |
| 31. | 2403 99 40 | Snuff | 72% |
| 32. | 2403 99 50 | Preparations containing snuff | 72% |
| 33. | 2403 99 60 | Tobacco extracts and essence bearing a brand name | 72% |
| 34. | 2403 99 60 | Tobacco extracts and essence not bearing a brand name | 65% |
| 35. | 2403 99 70 | Cut tobacco | 20% |
| 36. | 2403 99 90 | Pan masala containing tobacco ‘Gutkha’ | 204% |
| 37. | 2403 99 90 | All goods, other than pan masala containing tobacco ‘gutkha’ bearing a brand name | 96% |
| 38. | 2403 99 90 | All goods other than pan masala containing tobacco ‘gutkha’ not bearing a brand name | 89% |
| 39. | 2701 | Coal; briquettes, ovoids and similar solid fuels and manufactured from coal | INR 400 per tonne |
| 40. | 2702 | Lignite, whether or not agglomerated excluding jet | INR 400 per tonne |
| 41. | 2703 | Peat (including peat litter) whether or not agglomerated | INR 400 per tonne |
| 41A. | 27 | Coal rejects supplied by a coal washery, arising out of coal on which compensation cess has been paid and input tax credit thereof has not been availed by any person | NIL |
| 42. | [8702 10, 8702 20, 8702 30, 8702 30] | Motor vehicle for the transport of not more than 13 persons including the driver other than the vehicles of the description | 15% |
| 42A. | 87 | All old and used motor vehicles | NIL] |
| 42B. | 87 | Fuel Cell Motor Vehicles | NIL] |
| 43. | [8702 or 8703] | Motor vehicles cleared as ambulances duly fitted with all the fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such motor vehicles | NIL |
| 44. | 8703 10 10, 8703 80 | Electrically operated vehicles, including three wheeled electric motor vehicles | NIL |
| 45. | 8703 | Three wheeled vehicles | NIL |
| 46. | 8703 | Following motor vehicles of length not exceeding 4000 mm, namely- (a) Petrol, Liquefied petroleum gases (LPG) or compressed natural gas (CNG) driven vehicles of engine capacity not exceeding 1200 cc; and (b) Diesel driven vehicles of engine capacity not exceeding 15002 cc for persons with orthopedic physical disability, subject to the condition that an officer not below the rand of Deputy Secretary to the Government of India in the Department of Heavy Industries certifies that the said goods shall be used by the persons with orthopedic physical disability in accordance with the guidelines issued by the said department] | NIL |
| 47. | 8703 40, 8703 60 | Following Vehicles, with both spark-ignition internal combustion reciprocating piston engine and electric motor as motors for propulsion; (a) Motor vehicles cleared as ambulances duly fitted with all the fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such moto vehicles (b) Three wheeled vehickes | NIL
NIL |
| 48. | 8703 50, 8703 70 | Following Vehicles, with both compression-ignition internal combustion piston engine [diesel or semi diesel] and electric motor as motors for propulsion; (a) Motor vehicles cleared as ambulances, duly fitted with all the fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such motor vehicles (b) Three wheeled vehicle (c) Motor vehicles of engine capacity not exceeding 1500 cc and of length not exceeding 4000 mm (d) Motor vehicles other than those mentioned at (A), (b) and (c) | NIL
NIL NIL
15% |
| 49. | 8703 | Hydrogen vehicles based on fuel cell tech and of length not exceeding 4000 mm | NIL |
| 50. | 8702, 8703 21 or 8703 22 | Petrol, Liquefied petroleum gases (LPG) or compressed natural has (CNG) driven motor vehicles of engine capacity not exceeding 1200cc and of length not exceeding 4000 mm | 1% |
| 51. | 8702, 8703 31 | Diesel driven motor vehicles of engine capacity not exceeding 1500 cc and of length not exceeding 4000 mm | 3% |
| 52. | 8703 | Motor vehicles of engine capacity not exceeding 1500 cc | 17% |
| 52A. | 8703 | Motor vehicles of engine capacity exceeding 1500 cc popularly known as Sports Utility Vehicles (SUVs) including utility vehicles | 20% |
| 52B. | 8703 | Motor vehicles of engine capacity exceeding 1500 cc popularly known as Sports Utility Vehicles | 22% |
| 53. | 8711 | Motorcycles of engine capacity exceeding 350 cc | 3% |
| 54. | 8802 | Other aircraft | 3% |
| 55. | 8903 | Yacht and other vessels for pleasure or sports | 3% |
| 56. | Any chapter | All goods other than those mentioned at S.Nos. 1 to 55 above | Nil |
Rates of Compensation Cess in case of Services
| S.No. | Chapter/Heading/Section | Description of Goods | Cess Rate |
| (1) | (2) | (3) | (4) |
| 1. | Chapter 99 | Transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration | Same rate of cess as applicable on supply of similar goods involving transfer of title in goods |
| 2. | Chapter 99 | Transfer of right in goods or of undivided share in goods without the transfer of title thereof | Same rate of cess as applicable on supply of similar goods involving transfer of title in goods |
| 2A. | Chapter 99 | Leasing of motor vehicles purchased and leased prior to 1st July 2017 | 65% of the rate of cess as applicable on supply of similar goods involving transfer of title in goods |
| 3. | Chapter 99 | Any other supply of services | Nil |
