GoM Mulls Integrating GST Cess With Taxes

New Delhi: The Group of Ministers (GoM) on GST Compensation Cess, under Minister of State (MoS) for Finance Pankaj Chaudhary, on Wednesday discussed merger of Compensation Cess into GST.

States suggested that during the transition of Cess, once it is decided to merge with taxes, no new goods should be added to the list of luxury, sin and demerit goods. States were of the view that since the Compensation Cess ends in March 2026, the only way to restructure it is to merge the levy with the taxes and bring about separate tax rates for the items, on which Cess is levied currently.

“GST Compensation Cess is coming to an end. A discussion needed to be done on what will be the future of the Cess. Every State has given their views. This was the first meeting. Should it continue as Cess or be converted to tax and whether there would be changes in luxury, demerit and sin goods items. Discussion is going on,” Chaudhary said.