Background
Earlier, the CBIC issued Notification No.1/2017-Compensation Cess (Rate) dated June 28, 2017 ("the Compensation Cess Rate Notification") in order to notify the rate of GST compensation cess to be levied on the intra-State supplies or inter-State supplies of certain goods mentioned therein.
Further, the new (seventh) edition of the Harmonized System (HS) nomenclature i.e., HS-2022, has come into force from January 01, 2022. This edition has introduced significant changes to the Harmonized System with a total of 351 amendments at the six-digit level, covering a wide range of goods moving across borders.
As India is a party to the HS convention, necessary changes were brought in accordingly, in GST through the below mentioned notification:
![Changes in Compensation Cess Rate Notification w.r.t. supply of certain goods from January 01, 2022 to align it with HS 2022 Changes in Compensation Cess Rate Notification w.r.t. supply of certain goods from January 01, 2022 to align it with HS 2022](/img/preview/custom/20210309215707_functionality.jpg)
Notification
The CBIC vide Notification No. 2/2021-Compensation Cess (Rate) dated December 28, 2021 has amended the relevant entries of the Compensation Cess Rate Notification w.e.f. January 1, 2022, in the following manner:
S. No. |
Old HSN |
Old Entry |
New HSN |
New Entry |
25 |
2403 91 00 |
"Homogenised" or "reconstituted" tobacco, bearing a brand name |
2403 91 00 or 2404 11 00 |
"Homogenised" or "reconstituted" tobacco, bearing a brand name |
37 |
2403 99 90 |
All goods, other than pan masala containing tobacco 'gutkha', bearing a brand name |
2403 99 90 or 2404 11 00 or 2404 19 00 |
All goods, other than pan masala containing tobacco 'gutkha', bearing a brand name |
38 |
2403 99 90 |
All goods, other than pan masala containing tobacco 'gutkha', not bearing a brand name |
2403 99 90 or 2404 11 00 or 2404 19 00 |
All goods, other than pan masala containing tobacco 'gutkha', not bearing a brand name |
54 |
8802 |
Other aircraft (for example, helicopters, aeroplanes), for personal use. |
8802 or 8806 |
Other aircraft (for example, helicopters, aeroplanes), for personal use. |
The Notification can be accessed here