Commencement of Section 163 brings the Finance Act provision on compensation cess into force as notified by the Central Government.
Section 163 of the Finance Act, 2023 is brought into force by a Central Government notification under clause (b) of sub-section (2) of section 1 of the Finance Act, 2023, appointing the day on which the provision concerning the compensation cess regime shall come into operation by Notification No. 01/2023-Compensation Cess issued by the Department of Revenue.

Compensation cess period for levy and collection defined under the GST compensation framework with a statutory terminal date.
These rules, effective 1 July 2022, prescribe the framework for imposition and collection of the compensation cess under the Goods and Services Tax (Compensation to States) Act, 2017 and specify that the period for levy and collection of the cess shall be up to 31 March 2026.

Compensation cess amendment replaces specified Tamil Nadu enactment reference in GST compensation notification to align statutory reference on levy
Pursuant to sub-section (4) of Section 5 of the Goods and Services Tax (Compensation to States) Act, 2017, Notification No. 1/2021 substitutes in the Table to Notification No. 1/2018, under Tamil Nadu at serial number 99, the reference "Tamil Nadu Sugar Cane Cess (Validation) Act, 1963" with "Tamil Nadu Sugar Factories Control Act, 1949 (Section 14)", thereby altering the statutory citation in the GST compensation notification.

Commencement of GST compensation amendment appoints the Act to come into force from an officially notified commencement date.
The Central Government, under sub section (2) of section 1 of the Goods and Services Tax (Compensation to States) Amendment Act, 2018 (34 of 2018), appoints the 1st day of February, 2019 as the date on which the provisions of that Amendment Act shall come into force by way of statutory notification.

GST tax subsumption: Central and State statutes identified for inclusion under the GST compensation framework and base year revenue mapping.
Notification under section 5(4) of the Goods and Services Tax (Compensation to States) Act, 2017, specifying Central and State Acts whose specified taxes are subsumed into GST. It lists two Central Acts and, for each State/UT, identifies categories (VAT, luxury/entertainment taxes, entry tax/octroi/local body taxes, advertisement taxes, and cesses/surcharges) and the precise State statutes corresponding to those categories, and designates certifying authorities where Accountant General data are unavailable.

GST compensation cess rules establish application of central GST rules with specified omissions and title substitution.
The Central Government notifies the Goods and Services Tax Compensation Cess Rules, 2017, effective from the 1st day of July, 2017, and directs that the Central Goods and Services Tax Rules, 2017 shall apply mutatis mutandis to the compensation cess rules with modifications: substituting references to the Central Rules with the Compensation Cess Rules and omitting rules 3 to 7 and rules 117 to 120 from application to the compensation cess framework.

Commencement date: Goods and Services Tax (Compensation to States) Act designated to commence on the appointed day in July 2017.
Appoints the commencement date for the Goods and Services Tax (Compensation to States) Act, 2017 by designating the first day of July, 2017 as the date on which all provisions of the Act shall come into force, issued as a notification by the Department of Revenue under the Ministry of Finance invoking the Act's power to specify commencement.