To repay the liquidity support given to state governments during the Covid-19 period, India’s federal government has extended the timeline for GST compensation cess levy by four years until March 31, 2026. The move will impact sectors like automotive and tobacco through higher tax rates. The cess is levied on notified luxury goods falling in the 28 percent GST slab. While it will be levied on imported goods, exporters will be eligible to claim input tax credit refund relating to goods exported.
Source india-briefing
