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<h1>Compensation cess on specified GST supplies funds state compensation and is levied under prescribed valuation and collection mechanisms.</h1> Levy of a compensation cess is mandated on specified intra State and inter State supplies to provide States compensation for GST implementation revenue loss, to be levied and collected as prescribed on Council recommendation, with an exemption for composition taxpayers. The cess applies to Schedule entries and may be charged by value, quantity or other basis at rates not exceeding those in the Schedule; value based cess uses valuation under the Central GST Act. Cess on imports is levied per the Customs Tariff Act at the point customs duties are levied under the Customs Act.