GST compensation cess on luxury items extended | India News – Times of India

NEW DELHI: The central government has extended the validity of compensation cess levied along with the GST on luxury and “sin” goods such as cars and tobacco by nearly four years to raise funds for the additional borrowings undertaken during Covid-19 pandemic to compensate states for their “revenue loss”.


The cess is due to end on June 30 as part of the five-year formula devised by the Centre and the states to ensure that the latter’s revenue grew 14% annually. But due to the pandemic, the burden has now been passed on to consumers up to March 2026.

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