Background:
The GST Council’s 49th meeting was held in Delhi on February 18, 2023 under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The GST Council has inter-alia made the recommendation that the exemption benefit shall cover both coal rejects supplied to and supplied by a coal washery, arising out of coal on which Compensation Cess has been paid and no Input Tax Credit (“ITC”) thereof has been availed by any person.
Notification:
Now, the CBIC vide Notification No. 1/ 2023-Compensation Cess (Rate) dated February 28, 2023 has issued amendments in Notification No. 1/2017-Compensation Cess (Rate) dated June 28, 2017 (“the Compensation Rate Notification”), in order to align with recommendations of the 49th GST Council Meeting held on February 18, 2023, w.e.f. March 01, 2023, in a following manner:
| Schedule | |||
|
SI. No. |
Chapter / Heading / Sub-Heading / Tariff Item |
Existing Entry |
Revised Entry |
|
102 A |
2207 |
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 |
Coal rejects supplied to a coal washery or 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 |
The Notification can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1009654/ENG/Notifications
