Time period for levy of compensation cess extended till March 31, 2026 vide GST (Period of Levy and Collection of Cess) Rules, 2022

On June 24, 2022, the Ministry of Finance has notified Goods and Services Tax (Period of Levy and Collection of Cess) Rules, 2022, through which it has extended the time period for levy of compensation cess up to 31^st March 2026.

The Goods and Services Tax (Compensation to States) Act, 2017 provides for compensation to states for any loss in revenue due to the implementation of GST. Earlier the Government fixed the last date for levy of GST compensation cess till 1^st July 2022, however it has now been extended till 31^st March 2026.