Notification No. 1/2017-Compensation Cess (Rate) [N10-0GY]

In exercise of the powers conferred by sub-section (2) of section 8 of the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017), the Central Government, on the recommendations of the Council, hereby notifies the rate of cess as specified in column (4) of the Schedule appended to this notification, that shall be levied on the intra-State supplies or inter-State supplies of such goods, the description of which is specified in the corresponding entry in column (3) and falling under the tariff item, sub- heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Schedule.

Schedule

S. Chapter / Description of Goods Rate of goods No. Heading / and services tax Sub-heading compensation / Tariff item cess

(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. 2401 Unmanufactured tobacco (without lime tube) – 71% bearing a brand name

6. 2401 Unmanufactured tobacco (with lime tube) – bearing a 65% brand name

7. 2401 30 00 Tobacco refuse, bearing a brand name 61%

8. 2402 10 10 Cigar and cheroots 21% or Rs. 4170 per thousand, whichever is higher

9. 2402 10 20 Cigarillos 21% or Rs. 4170 per thousand, whichever is higher

10. 2402 20 10 Cigarettes containing tobacco other than filter 5% + Rs.1591 cigarettes, of length not exceeding 65 millimetres per thousand 11. 2402 20 20 Cigarettes containing tobacco other than filter 5% + Rs.2876 cigarettes, of length exceeding 65 millimetres but not per thousand exceeding 75 millimetres

12. 2402 20 30 Filter cigarettes of length (including the length of the 5% + Rs.1591

1

S. Chapter / Description of Goods Rate of goods No. Heading / and services tax Sub-heading compensation / Tariff item cess

(1) (2) (3) (4) filter, the length of filter being 11 millimetres or its per thousand actual length, whichever is more) not exceeding 65 millimetres

13. 2402 20 40 Filter cigarettes of length (including the length of the 5% + Rs.2126 filter, the length of filter being 11 millimetres or its per thousand actual length, whichever is more) exceeding 65 millimetres but not exceeding 70 millimetres

14. 2402 20 50 Filter cigarettes of length (including the length of the 5% + Rs.2876 filter, the length of filter being 11 millimetres or its per thousand actual length, whichever is more) exceeding 70 millimetres but not exceeding 75 millimetres

15. 2402 20 90 Other cigarettes containing tobacco 5% + Rs.4170 per thousand 16. 2402 90 10 Cigarettes of tobacco substitutes Rs.4006 per thousand 17. 2402 90 20 Cigarillos of tobacco substitutes 12.5% or Rs. 4,006 per thousand whichever is higher

18. 2402 90 90 Other 12.5% or Rs. 4,006 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' 17% commonly known as 'hookah' tobacco or 'gudaku' not bearing a brand name

21. 2403 11 90 Other water pipe smoking tobacco not bearing a 11% brand name.

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 “Homogenised” or “reconstituted” tobacco, bearing a 72% brand name

26. 2403 99 10 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%

2

S. Chapter / Description of Goods Rate of goods No. Heading / and services tax Sub-heading compensation / Tariff item cess

(1) (2) (3) (4)

34. 2403 99 60 Tobacco extracts and essence not bearing a brand 65% name

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 96% 'gutkha', bearing a brand name

38. 2403 99 90 All goods, other than pan masala containing tobacco 89% 'gutkha', not bearing a brand name

39. 2701 Coal; briquettes, ovoids and similar solid fuels Rs.400 per tonne manufactured from coal.

40. 2702 Lignite, whether or not agglomerated, excluding jet Rs.400 per tonne

41. 2703 Peat (including peat litter), whether or not Rs.400 per tonne agglomerated

42. 8702 10 Motor vehicles for the transport of ten or more 15% persons, including the driver

43. 8703 Motor vehicles cleared as ambulances duly fitted NIL with all the fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such motor vehicles

44. 8703 10 10, Electrically operated vehicles, including three NIL 8703 80 wheeled electric motor vehicles.

45. 8703 Three wheeled vehicles NIL

46. 8703 Cars for physically handicapped persons, subject to NIL the following conditions: a) an officer not below the rank of Deputy Secretary to the Government of India in the Department of Heavy Industries certifies that the said goods are capable of being used by the physically handicapped persons; and b) the buyer of the car gives an affidavit that he shall not dispose of the car for a period of five years after its purchase.

47. 8703 40, Following Vehicles, with both spark-ignition internal NIL 8703 50, 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 motor vehicles b) Three wheeled vehicles c) Motor vehicles of engine capacity not exceeding 1200cc and of length not exceeding 4000 mm. Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined

3

S. Chapter / Description of Goods Rate of goods No. Heading / and services tax Sub-heading compensation / Tariff item cess

(1) (2) (3) (4) as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under.

48. 8703 60, Following Vehicles, with both compression -ignition NIL 8703 70 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 vehicles c) Motor vehicles of engine capacity not exceeding 1500 cc and of length not exceeding 4000 mm. Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under.

49. 8703 Hydrogen vehicles based on fuel cell tech and of NIL length not exceeding 4000 mm. Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under.

50. 8703 21 or Petrol, Liquefied petroleum gases (LPG) or 1% 8703 22 compressed natural gas (CNG) driven motor vehicles of engine capacity not exceeding 1200cc and of length not exceeding 4000 mm. Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under.

51. 8703 31 Diesel driven motor vehicles of engine capacity 3% not exceeding 1500 cc and of length not exceeding 4000 mm. Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under.

52. 8703 All goods other than those mentioned at S. Nos. 43 to 15% 51 above

53. 8711 Motorcycles of engine capacity exceeding 350 cc. 3%

54. 8802 Other aircraft (for example, helicopters, aeroplanes), 3% for personal use.

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 Nil 55 above

4

Explanation.–

(1) In this Schedule, “tariff item”, “heading”, “sub-heading” and “Chapter” shall mean respectively a tariff item, heading, sub-heading and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).

(2) The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification.

(3) For the purposes of this notification, the phrase “brand name” means brand name or trade name, whether registered or not, that is to say, a name or a mark, such as symbol, monogram, label, signature or invented word or writing which is used in relation to such specified goods for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified goods and some person using such name or mark with or without any indication of the identity of that person.

2. This notification shall come into force with effect from the 1st day of July, 2017.