Background:
Earlier, the CBIC issued Notification No.1/2017-Compensation Cess (Rate) dated June 28, 2017 (“the Compensation Cess Rate Notification”) in order to notify the rate of GST compensation cess to be levied on the intra-State supplies or inter-State supplies of certain goods mentioned therein.
Further, the new (seventh) edition of the Harmonized System (HS) nomenclature i.e., HS-2022, has come into force from January 01, 2022. This edition has introduced significant changes to the Harmonized System with a total of 351 amendments at the six-digit level, covering a wide range of goods moving across borders.
As India is a party to the HS convention, necessary changes were brought in accordingly, in GST through the below mentioned notification:
Notification:
The CBIC vide Notification No. 2/2021-Compensation Cess (Rate) dated December 28, 2021 has amended the relevant entries of the Compensation Cess Rate Notification w.e.f. January 1, 2022, in the following manner:
|
S. No. |
Old HSN | Old Entry | New HSN | New Entry |
| 25 |
2403 91 00 |
Homogenised” or “reconstituted” tobacco, bearing a brand name |
2403 91 00 or 2404 11 00 |
Homogenised” or “reconstituted” tobacco, bearing a brand name |
|
37 |
2403 99 90 |
All goods, other than pan masala containing tobacco ‘gutkha’, bearing a brand name | 2403 99 90 or 2404 11 00 or 2404 19 00 |
All goods, other than pan masala containing tobacco ‘gutkha’, bearing a brand name |
|
38 |
2403 99 90 |
All goods, other than pan masala containing tobacco ‘gutkha’, not bearing a brand name | 2403 99 90 or 2404 11 00 or 2404 19 00 | All goods, other than pan masala containing tobacco ‘gutkha’, not bearing a brand name |
|
54 |
8802 |
Other aircraft (for example, helicopters, aeroplanes), for personal use. | 8802 or 8806 |
Other aircraft (for example, helicopters, aeroplanes), for personal use. |
The Notification can be accessed at: https://www.cbic.gov.in/resources//htdocs-cbec/gst/Compensation_Cess02_2021_rate_eng.pdf
Our comments:
Similar changes have been adopted in Custom Tariff Act, 1975 from January 01, 2022 so as to align the same with HS 2022 vide D.O.F.No.524/11/2021-STO(TU) dated December 20, 2021.
The Letter can be accessed at: https://a2z-bucket.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/12/Letter-vide-D.O.F.No_.524112021-STOTU-dated-December-20-2021.pdf
The HSN Amendments chapter wise can be accessed at: https://a2z-bucket.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/12/HSN-Amendments-Chapterwise-from-Jan-1-2022.pdf
Correlation of Customs Tariff between 2021-2022 can be accessed at: https://www.cbic.gov.in/resources//htdocs-cbec/deptt_offcr/Guidance%20Document%20on%20Correlation%20of%20Customs%20Tariff%20between%202021%20and%202022.pdf