The GOODS AND SERVICES TAX (COMPENSATION TO STATES) Act 2017
chandigarh · 2017
The scanned source for this Act is imperfect — headings or section boundaries may be off. Verify against the official source.
- S. 1(1) This Act may be called the Goods and Services Tax (Compensation to States) Act, 2017
- S. 2Section defines key terms used in the Goods and Services Tax (Compensation to States) Act 2017.
- S. 3Section 3 sets a fixed compensation fee of 400 rupees per tonne for coal and similar solid fuels manufactured from coal or lignite.
- S. 4Section sets 2016 as the base year for calculating compensation for GST transition.
- S. 5Section 5 defines the base year revenue for a State under the GST Compensation Act, calculating it from various pre-GST taxes.
- S. 6Section 6 calculates projected revenue for a state by applying a growth rate to the base year revenue.
- S. 7(1) The compensation under this Act shall be payable to any State during the transition period
- S. 8Section 8 imposes a cess on intra-State and inter-State supplies of goods and services to compensate states for revenue loss due to GST implementation.
- S. 9Section 9 mandates taxable persons to pay cess, file returns, and apply for refunds as prescribed, aligning with central tax provisions.
- S. 10Section 10 establishes a compensation fund for states, utilizing proceeds from cess and other recommended amounts, with half transferred to the Centre and half distributed to states based on their tax revenues.
- S. 11Section 11 applies central and integrated GST rules to the levy and collection of the cess on intra- and inter-State supplies of goods and services.
- S. 12Section 12 outlines rules for implementing the compensation provisions of the Act, including refund conditions and cess collection.
- S. 13Section 13 mandates rules made by the Central Government under the Act to be presented to Parliament for a 30-day review period.
- S. 14Section 14 allows the Central Government to address difficulties in implementing the Act, but only within three years, and requires parliamentary review of any orders.
- S. 2016Section 2016 outlines compensation mechanisms for states under the Goods and Services Tax Act.