Tobacco products: compensation cess entries in the Schedule are replaced with nil rates effective 1 February 2026.
The notification amends the Compensation Cess (Rate) Schedule by substituting the entry in column (4) with "Nil" for a comprehensive list of specified S. Nos. and subitems (S. Nos. 1 through 38 and listed alpha variants), thereby replacing the existing column (4) entries with "Nil" for those items. The amendment is made under sub-section (2) of section 8 of the Goods and Services Tax (Compensation to States) Act, 2017 and comes into force on the 1st day of February, 2026.

GST compensation cess: rates on specified goods set to nil, removing cess liability for the listed entries.
The Central Government amends Notification No. 1/2017-Compensation Cess (Rate) by substituting the entry "Nil" in column (4) of the Schedule against multiple specified serial numbers, thereby replacing the listed compensation cess rate entries with "Nil." The notification records its commencement date and cites the principal notification and its most recent prior amendment.

Compensation cess cap on exported taxable goods set at concessional rate subject to export, documentation, and movement conditions.
Grants a concessional compensation cess treatment on taxable goods supplied by a registered supplier to a registered recipient for export, exempting the portion of cess above a minimal rate subject to conditions: issuance of tax invoice, recipient's export within the specified period, inclusion of supplier GSTIN and invoice number in shipping documentation, recipient's registration with a recognised export body, provision of order to the supplier and tax officer, prescribed movement of goods (direct to export points or registered warehouses), requirements for aggregation and warehouse acknowledgements, and submission of shipping bill and export proof to supplier and jurisdictional tax officer.

Compensation cess exemption for Unit Run Canteen supplies under heading 2202 to authorised customers takes effect.
The Central Government exempts supply of goods falling under heading 2202 by a Unit Run Canteen (URC) to authorised customers from the whole of the Goods and Services Tax Compensation Cess leviable under section 8 of the Goods and Services Tax (Compensation to States) Act, 2017. The exemption is made under powers conferred by the Central GST, Integrated GST and Compensation to States Acts on the recommendations of the Council. References to tariff item, heading, sub-heading and Chapter follow the First Schedule to the Customs Tariff Act, 1975 and its interpretative rules.

Compensation cess rates updated for tobacco and pan-masala; new branded/non branded and declared retail price distinctions applied.
The notification amends the compensation cess schedule under the Compensation to States Act, 2017 by revising entries and inserting new sub-entries that distinguish goods by brand name and by whether they have a "declared retail sale price," prescribes specific ad valorem percentage rates and unit-based cess for numerous tobacco and pan-masala commodity codes, substitutes a detailed description for certain utility vehicles, and inserts an Explanation defining "declared retail sale price" as the retail price required to be declared under the Legal Metrology Act; effective 27th July, 2023.

GST compensation cess adjusted to specified per unit retail price rates for tobacco and pan masala, with R defined as retail sale price.
Amends the Schedule to the principal notification by substituting specified per unit entries for multiple tariff items relating to tobacco, pan masala and related products, inserting new entries for homogenised/reconstituted tobacco and pan masala categories, and updating certain tariff classifications; per unit rates are expressed in terms of R denoting retail sale price.

Compensation cess on coal rejects: Schedule entry amended to define scope and input tax credit condition, effective March implementation.
Amendment to the Compensation Cess Schedule substitutes the entry at Sl. No. 41A, column (3) to read: "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"; made under the powers of section 8(2) of the Goods and Services Tax (Compensation to States) Act, 2017, effective from 1st March, 2023.

Compensation cess rate: substitutes tariff classification entries for specified items and takes effect in January.
Substitutes Schedule column (2) entries: S. No. 25 with "2403 91 00 or 2404 11 00"; S. No. 37 with "2403 99 90 or 2404 11 00 or 2404 19 00"; S. No. 38 with "2403 99 90 or 2404 11 00 or 2404 19 00"; S. No. 54 with "8802 or 8806"; the substitutions take effect on the first day of January following publication.

Compensation cess on carbonated beverages introduced; prescribed rate applied to specified beverages effective from stated notification.
The Central Government, under section 8(2) of the GST (Compensation to States) Act, 2017, amends the Compensation Cess (Rate) Schedule by inserting S. No. 4B to impose a compensation cess on carbonated beverages of fruit drink or carbonated beverages with fruit juice (tariff heading 2202), prescribing a cess rate for that entry, with the amendment effective from the first day of October, 2021.

Compensation cess refund disallowed for inverted duty on tobacco and substitutes, restricting claims for unutilised input tax credit.
No refund of unutilised compensation cess shall be allowed where credit accumulated because the compensation cess rate on inputs is higher than on outputs, in respect of goods under Chapter 24 (tobacco and manufactured tobacco substitutes); interpretation follows the First Schedule to the Customs Tariff Act, 1975 and the notification is framed under the specified provisions of the CGST Act and the GST (Compensation to States) Act.

Compensation cess amendment adds caffeinated beverages to schedule and revises motor vehicle classifications with disability certification condition, effective October.
The notification amends the Compensation Cess schedule to insert Caffeinated Beverages, revise several motor vehicle descriptions and tariff entries, and prescribe a conditional certification requirement for diesel vehicles intended for persons with orthopedic physical disability; these amendments take effect on the first day of October, 2019.

Compensation cess exemption for airport duty free sales to outgoing international tourists removes cess liability on eligible supplies.
Exempts from the goods and services tax compensation cess any supply of goods by a retail outlet in the departure area of an international airport beyond immigration counters when supplied to an outgoing international tourist, defined as a non resident person visiting for up to six months for legitimate non immigrant purposes; the exemption is effected under the Compensation to States Act and the Central GST Act and operates from the notified commencement date.

Compensation cess corrigendum corrects published wording, replacing a phrase to amend the notification text.
Corrigendum to the Compensation Cess (Rate) notification replaces the phrase "and no" with "and" at the specified Gazette location, constituting a ministerial textual correction to the published Notification No. 2/2018-Compensation Cess (Rate) and referencing the principal Notification No.1/2017-Compensation Cess (Rate).

Compensation cess amendment inserts nil cess entries for coal washery rejects and fuel cell motor vehicles, creating specific cess carve-outs.
Amendment to the compensation cess schedule inserts two nil cess entries: coal rejects supplied by a coal washery where compensation cess has been paid and input tax credit has not been availed, and fuel cell motor vehicles; both entries are added to the Schedule and the notification specifies the date of coming into force.

Compensation cess exemption for used motor vehicles where supplier has not availed input tax credit.
The notification inserts a new Schedule entry exempting all old and used motor vehicles by assigning a NIL compensation cess rate, with an Explanation excluding the exemption where the supplier has availed input tax credit, CENVAT credit, or input tax credit of value added tax or any other taxes on such vehicles, and substitutes a tariff code entry in the adjacent Schedule serial number.

Reduced compensation cess on leased motor vehicles applies where vehicles were acquired and leased before the statutory cutoff, subject to conditions.
Notification fixes a reduced compensation cess on specified motor vehicles purchased and supplied on lease before 1 July 2017, by applying sixty five percent of the cess otherwise applicable, subject to annexed conditions including that vehicles were acquired before the cutoff date and, where applicable, suppliers are registered and have not availed input tax credit on taxes paid on such vehicles.

Reduced compensation cess for leasing of motor vehicles purchased before July 2017 applies temporarily under amended rates.
Insertion of entry 2A in Notification No. 2/2017 provides that leasing of motor vehicles purchased and leased prior to 1st July 2017 (Chapter 99) shall attract 65 percent of the rate of cess as applicable on supply of similar goods involving transfer of title in goods; this reduced cess entry shall not apply on or after 1st day of July, 2020.

Compensation cess rates updated for hybrid and diesel-electric motor vehicles, distinguishing engine capacity and SUV classification.
Amends the Compensation Cess (Rate) schedule to reclassify motor vehicles with both internal combustion and electric propulsion into specified subcategories (ambulances, three wheelers, lower engine capacity/length vehicles, and others) with nil cess for certain subcategories and a specified cess for other hybrid categories; and introduces differentiated cess rates for motor vehicles by engine capacity and a higher rate for vehicles designated as Sports Utility Vehicles, with SUV defined by reference to length and ground clearance and specifications determined under the Motor Vehicles Act, 1988.

Exemption of compensation cess on intra State second hand supplies places cess liability on registered second hand dealers when valuation rules apply.
Exempts intra State supplies of second hand goods received by a registered person dealing in buying and selling of second hand goods, who pays the goods and services tax compensation cess on the value of outward supply of such goods as determined under the valuation rules, from the whole of the goods and services tax compensation cess leviable where the supplier is not registered.

Compensation cess increase on cigarettes amends GST schedule rates, altering specified entries and coming into force mid-July.
Amends the Compensation Cess schedule under GST by substituting new cess entries for S. No. 10 to S. No. 15 in the principal notification, replacing prior column (4) entries with specified composite rates for the listed cigarette categories. The amendment is made under the powers conferred by the Compensation to States Act and takes effect from 18th July 2017.