15 Jul CBIC Exempts Compensation Cess on Aerated Beverages for Defence Canteens | Notification No. 01/2024
Background:
During the 53rd Meeting of the GST Council held on June 22, 2024, in New Delhi, it was recommended to exempt Compensation Cess on the supply of aerated beverages and energy drinks to authorized customers by Unit Run Canteens under the Ministry of Defence.
Notification:
The CBIC, via Notification No.01/2024 – Compensation Cess (Rate) dated July 12, 2024, exercised its powers under sub-section (1) of Section 11 of the CGST Act, read with sub-section (1) of Section 11 of the GST (Compensation to States) Act and sub-section (1) of Section 6 of the IGST Act, to exempt the supply of goods falling under Heading 2202 by a Unit Run Canteen to authorized customers from the whole of the GST Compensation Cess levied under Section 8 of the GST (Compensation to States) Act, effective from July 15, 2024.
Explanation:
- In this Notification, “tariff item”, “heading”, “sub-heading” and “Chapter” shall mean a tariff item, heading, sub-heading, and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).
- The rules for interpreting the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule, shall apply to the interpretation of this notification as far as possible.
Effect of the Notification:
Effective from July 15, 2024, the CBIC exempts Compensation Cess on the supply of aerated beverages and energy drinks to authorized customers by Unit Run Canteens under the following Heading:
- S. No.: 12B
- Chapter / Heading / Sub-heading / Tariff item: 2202
- Description of Goods: Carbonated Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice.
The Notification can be accessed at:
Notification No. 01/2024 – Compensation Cess (Rate) 12.07.2024
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