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

Compensation cess applicability to transfer of right to use goods covers motor vehicle provision and rent a cab services under notification rates.
The Compensation Cess applies to specified Chapter 99 services concerning the transfer of the right to use any goods, as set out in Notification No.2/2017-Compensation Cess (Rate) and its corrigendum. Provision of motor vehicles to local authorities under tender and rent a cab services (e.g., Ola, Uber) are covered by Serial No.2 of the notification's Table and thus fall within the cess's scope.