In force · As amended up to 2026-08
2. The Constitution (One Hundred and First Amendment) Act, 2016, has amended the Constitution to facilitate the introduction of goods and services tax in the Country. The amendments made in the Constitution confer simultaneous powers upon Parliament and the State Legislatures to make laws for levy of goods and services tax on the supplies of goods or services or both. Section 18 of the Constitution (One Hundred and First Amendment) Act, 2016, provides that, "Parliament shall, by law, on the recommendations of the Goods and Services Tax Council, provide for compensation to the States for loss of revenue arising on account of implementation of the goods and services tax for a period of five years.".
2. The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), the section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this Schedule.
|S. No.|Description of supply of goods or<br>services|Tariff item, heading,<br>sub-heading, Chapter, or<br>supply of goods or<br>services, as the case may<br>be|The maximum rate at<br>which goods and services<br>tax<br>compensation<br>cess<br>may be collected|<br> <br>|
|---|---|---|---|---|
|(1)|(2)|(3)|(4)||
|1.|Pan Masala.|2106 90 20|1[fifty-one per cent. of<br>retail sale price per unit]||
|2.|Tobacco and manufactured tobacco<br>substitutes, including tobacco<br>products.|24|2[Four thousand one<br>hundred and seventy<br>rupees per thousand sticks<br>or two hundred and ninety<br>per cent._ad valorem_or a<br>combination thereof, but<br>not exceeding four<br>thousand one hundred and<br>seventy rupees per<br>thousand sticks plus two<br>hundred and ninety per<br>cent._ad valorem_or<br>hundred per cent. of retail<br>sale price per unit.]||
|3.|Coal, briquettes, ovoids and similar<br>solid fuels manufactured from coal,<br>lignite, whether or not agglomerated,<br>excluding jet, peat (including peat<br>litter), whether or not agglomerated.|2701, 2702 or 2703|Four hundred rupees per<br>tonne.||
|4.|<br>Aerated waters.|2202 10 10|Fifteen<br>per<br>cent.<br>ad valorem.||
|3[4A.|Motor vehicles for the transport of not<br>more than thirteen persons, including<br>the driver.|8702 10, 8702 20,8702 30<br>or 8702 90|Twenty-five per cent.ad<br>valorem.]||
|5.|Motor cars and other motor vehicles<br>principally designed for the transport<br>of persons (other than motor vehicles<br>for the transport of ten or more<br>persons,<br>including<br>the<br>driver),<br>including station wagons and racing<br>cars.|8703|4[Twenty-five per cent.<br>ad valorem.]||
|6.|Any other supplies.||Fifteen per cent.<br>ad valorem.||
cent.
4[Twenty-five per cent.
1. Subs. by Act 8 of 2023, s. 163, for "One hundred and thirty-five per cent. ad valorem " (w.e.f. 1-4-2023).
2. Subs. by s. 163, ibid ., for certain words (w.e.f. 1-4-2023).
3. Ins. by Act 9 of 2018, s. 2 (w.e.f. 2-9-2017).
4. Subs. by s. 2, ibid ., for "fifty per cent. ad valorem " (w.e.f. 2-9-2017).
1[ Explanation. —For the purposes of this Schedule,—
(i) "retail sale price" means the maximum price at which the concerned goods in packaged form may be sold to the ultimate consumer and includes all taxes, local or otherwise, freight, transport charges, commission payable to dealers, and all charges towards advertisement, delivery, packing, forwarding and the like and the price is the sole consideration for such sale:
Provided that where the provisions of the Legal Metrology Act, 2009 (1 of 2010) or the rules made thereunder or any other law for the time being in force require to declare on the package, the retail sale price excluding any taxes, local or otherwise, the retail sale price shall be construed accordingly;
(ii) where on the package of any concerned goods more than one retail sale price is declared, the maximum of such retail sale price shall be deemed to be the retail sale price;
(iii) where the retail sale price, declared on the package of any concerned goods at the time of its clearance from the place of manufacture, is altered to increase the retail sale price, such altered retail sale price shall be deemed to be the retail sale price;
(iv) where different retail sale prices are declared on different packages for the sale of any concerned goods in packaged form in different areas, each such retail sale price shall be the retail sale prices for the purposes of determination of the rate of cess for the said goods intended to be sold in the area to which the retail sale price relates.]
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Source: India Code