Compensation cess: GoM may seek more time to submit report

The group of ministers (GoM) on compensation cess will likely approach the GST Council, seeking an extension beyond the December 31 deadline to firm up its report, a person aware of the matter said.

The 10-member GoM under Union minister of state for finance Pankaj Chaudhary may need at least six more months to wrap up discussions and finalise the report, given the complexity of the matter, said the person. The GST Council will take a final call on the extension, most likely in its next meeting scheduled for December 21.

The GoM was set up in September to make taxation proposals to replace the compensation cess upon its abolition in March 2026. Under the GST regime, compensation cess at varied rates is imposed on luxury, sin and demerit goods on top of the 28% tax.