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Core Purpose

This notification amends Notification No. 1/2017-Compensation Cess (Rate) dated June 28, 2017, to substitute 'Nil' for existing entries in column (4) of its SCHEDULE for various serial numbers, thereby reducing the compensation cess rate for those items.

Detailed Summary

The Ministry of Finance (Department of Revenue) issued Notification No. 03/2025-Compensation Cess (Rate) on December 31, 2025, identified as G.S.R. 945(E). This notification, issued by the Central Government under sub-section (2) of section 8 of the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017) and on the recommendations of the Council, makes further amendments to the principal Notification No. 1/2017-Compensation Cess (Rate), dated June 28, 2017 (G.S.R. 720(E)). Specifically, for serial numbers 1, 1A, 5, 5A, 6, 6A, 7, 7A, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 19A, 20, 20A, 21, 21A, 22, 22A, 23, 23A, 24, 24A, 24B, 24C, 25, 26, 26A, 27, 27A, 28, 28A, 29, 29A, 30, 30A, 31, 31A, 32, 32A, 33, 33A, 34, 34A, 35, 35A, 36, 36A, 36B, 36C, 36D, 36E, 37, and 38 in the SCHEDULE of the said principal notification, the existing entries in column (4) shall be substituted with "Nil". This notification is signed by Dheeraj Sharma, Under Secretary, and comes into force on February 1, 2026. The principal notification was last amended by Notification No. 2/2025-Compensation Cess (Rate), dated September 17, 2025 (G.S.R. 659(E)).

Full Text

REGD. No. D. L.-33004/99 The Gazette of India C.G. DL-E-31122025-268974 EXTRAORDINARY PART II-Section 3-Sub-section (i) PUBLISHED BY AUTHORITY No. 859] NEW DELHI, WEDNESDAY, DECEMBER 31, 2025/PAUSHA 10, 1947 MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION New Delhi, the 31st December, 2025 No. 03/2025-Compensation Cess (Rate) G.S.R. 945(E). — In exercise of the powers conferred by sub-section (2) of section 8 of the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 1/2017-Compensation Cess (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 720(E), dated the 28th June, 2017, namely :- In the said notification, in the SCHEDULE, — i. against S. No. 1, for the entry in column (4), the entry "Nil" shall be substituted; ii. against S. No. 1A, for the entry in column (4), the entry "Nil" shall be substituted; iii. against S. No. 5, for the entry in column (4), the entry "Nil" shall be substituted; iv. against S. No. 5A, for the entry in column (4), the entry "Nil" shall be substituted; v. against S. No. 6, for the entry in column (4), the entry "Nil" shall be substituted; vi. against S. No. 6A, for the entry in column (4), the entry "Nil" shall be substituted; vii. against S. No. 7, for the entry in column (4), the entry "Nil” shall be substituted; viii. against S. No. 7A, for the entry in column (4), the entry "Nil" shall be substituted; ix. against S. No.8, for the entry in column (4), the entry "Nil" shall be substituted; x. against S. No. 9, for the entries in column (4), the entry "Nil" shall be substituted; xi. against S. No. 10, for the entries in column (4), the entry "Nil” shall be substituted; xii. against S. No. 11, for the entries in column (4), the entry "Nil" shall be substituted; xiii. against S. No. 12, for the entries in column (4), the entry "Nil" shall be substituted; xiv. against S. No. 13, for the entries in column (4), the entry "Nil” shall be substituted; xv. against S. No. 14, for the entries in column (4), the entry “Nil” shall be substituted; xvi. against S. No. 15, for the entries in column (4), the entry "Nil” shall be substituted; xvii. against S. No. 16, for the entries in column (4), the entry “Nil” shall be substituted; xviii. against S. No. 17, for the entries in column (4), the entry "Nil” shall be substituted; xix. against S. No. 18, for the entries in column (4), the entry "Nil" shall be substituted; xx. against S. No. 19, for the entries in column (4), the entry "Nil" shall be substituted; xxi. against S. No. 19A, for the entries in column (4), the entry "Nil” shall be substituted; xxii. against S. No. 20, for the entries in column (4), the entry "Nil” shall be substituted; xxiii. against S. No. 20A, for the entries in column (4), the entry "Nil" shall be substituted; xxiv. against S. No. 21, for the entries in column (4), the entry "Nil" shall be substituted; xxv. against S. No. 21A, for the entries in column (4), the entry "Nil" shall be substituted; xxvi. against S. No. 22, for the entries in column (4), the entry "Nil" shall be substituted; xxvii. against S. No. 22A, for the entries in column (4), the entry "Nil” shall be substituted; xxviii. against S. No. 23, for the entries in column (4), the entry “Nil” shall be substituted; xxix. against S. No. 23A, for the entries in column (4), the entry "Nil” shall be substituted; xxx. against S. No. 24, for the entries in column (4), the entry "Nil" shall be substituted; xxxi. against S. No. 24A, for the entries in column (4), the entry "Nil" shall be substituted; xxxii. against S. No. 24B, for the entries in column (4), the entry "Nil” shall be substituted; xxxiii. against S. No. 24C, for the entries in column (4), the entry "Nil" shall be substituted; xxxiv. against S. No. 25, for the entries in column (4), the entry "Nil” shall be substituted; xxxv. against S. No. 26, for the entries in column (4), the entry “Nil” shall be substituted; xxxvi. against S. No. 26A, for the entries in column (4), the entry "Nil" shall be substituted; xxxvii. against S. No. 27, for the entries in column (4), the entry “Nil” shall be substituted; xxxviii. against S. No. 27A, for the entries in column (4), the entry "Nil" shall be substituted; xxxix. against S. No. 28, for the entries in column (4), the entry “Nil” shall be substituted; xl. against S. No. 28A, for the entries in column (4), the entry "Nil" shall be substituted; xli. against S. No. 29, for the entries in column (4), the entry "Nil” shall be substituted; xlii. against S. No. 29A, for the entries in column (4), the entry "Nil" shall be substituted; xliii. against S. No. 30, for the entries in column (4), the entry "Nil" shall be substituted; xliv. against S. No. 30A, for the entries in column (4), the entry "Nil" shall be substituted; xlv. against S. No. 31, for the entries in column (4), the entry "Nil” shall be substituted; xlvi. against S. No. 31A, for the entries in column (4), the entry "Nil" shall be substituted; xlvii. against S. No. 32, for the entries in column (4), the entry "Nil” shall be substituted; xlviii. against S. No. 32A, for the entries in column (4), the entry "Nil” shall be substituted; xlix. against S. No. 33, for the entries in column (4), the entry "Nil” shall be substituted; I. against S. No. 33A, for the entries in column (4), the entry "Nil" shall be substituted; li. against S. No. 34, for the entries in column (4), the entry "Nil" shall be substituted; lii. against S. No. 34A, for the entries in column (4), the entry "Nil" shall be substituted; liii. against S. No. 35, for the entries in column (4), the entry “Nil” shall be substituted; liv. against S. No. 35A, for the entries in column (4), the entry "Nil” shall be substituted; lv. against S. No. 36, for the entries in column (4), the entry “Nil” shall be substituted; lvi. against S. No. 36A, for the entries in column (4), the entry "Nil" shall be substituted; lvii. against S. No. 36B, for the entries in column (4), the entry "Nil" shall be substituted; lviii. against S. No. 36C, for the entries in column (4), the entry "Nil” shall be substituted; lix. against S. No. 36D, for the entries in column (4), the entry "Nil" shall be substituted; lx. against S. No. 36E, for the entries in column (4), the entry "Nil" shall be substituted; lxi. against S. No. 37, for the entries in column (4), the entry "Nil" shall be substituted; lxii. against S. No. 38, for the entries in column (4), the entry "Nil" shall be substituted. 2. This notification shall come into force on the 1st day of February, 2026. [F. No. CBIC-190349/75/2025-TRU ] DHEERAJ SHARMA, Under Secy. Note: -The principal notification No.1/2017-Compensation Cess (Rate), dated the 28th day of June, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 720(E), dated the 28th day of June, 2017, and was last amended vide notification No. 2/2025-Compensation Cess (Rate), dated the 17th September, 2025, published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i), vide number G.S.R. 659(E), dated the 17th September, 2025. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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