My article on “Concept of Cess in GST Regime” is published in the second fortnightly issue of March, 2017 of VAT LAW JOURNAL. The Cess in GST aims at generating a corpus of Rs. 50,000 crores for meeting the compensatory liability of the States and shall be applicable for five years from the date of appointment of GST , the period for which the Central Government has agreed to compensate the States for the likely losses due to implementation of GST . No other cess except this will be applicable in GST regime and it has been clarified that all other cesses shall be subsumed into GST . The aforesaid period of five years may be extended by the GST Council . Initially this cess has been proposed in respect of luxury cars , station wagons , racing cars , aerated drinks , pan masala , tobacco & cigarettes , coal and lignite . it shall be levied on top of the GST rate on the aforesaid commodities .

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