GST Compensation Cess

[Maulin Golwala]

Is GST Compensation cess applicable on provision of motor vehicle to local authority (under tender system)?

Is Compensation cess applicable to rent-a-cab service providers like Ola & Uber?

Please provide reference to relevant notification / circular.

AI Summary

GST Compensation Cess Applies to Local Authorities and Cab Services Like Ola, Uber Under Notification No. 2/2017 A discussion forum addressed the applicability of GST Compensation Cess on motor vehicle provisions to local authorities and rent-a-cab services like Ola and Uber. The query was initiated on January 21, 2019, and received two replies by January 23, 2019. The first response referenced Notification No. 2/2017-Compensation Cess (Rate) and its corrigendum, indicating that such services fall under Serial No. 2 of the notification. The second reply concurred with the first response, affirming the applicability of the compensation cess as outlined in the notification.