UTGST & Compensation Cess

Power to make rules

Cess Act s.12, GST (Compensation to States) Act

Chapter active Text as on 2026-09-05 Source CBIC

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The Central Government makes the rules under this Act on the Council’s recommendation.

How this provision is built

The skeleton, clause by clause — useful when a notice cites a specific sub-clause.

(1) of section 8 ; (e) the manner and forms for payment of cess , furnishing of returns and refund of cess under sub-section (1) of section 9 ; and (f) any other matter which is to be, or may be, prescribed, or in respect of…
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:- (a) the conditions which were included in the total base year revenu…
(3) of section 5 ; (b) the conditions subject to which any part of revenues not credited in the Consolidated Fund of the respective State shall be included in the total base year revenue of the State, under sub-section (6) o…
(4) of article 279A of the Constitution, under sub-section (3) of section 5 ; (b) the conditions subject to which any part of revenues not credited in the Consolidated Fund of the respective State shall be included in the to…

The exact words of the law

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Reproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.

Read the full provision+
Section 12. Power to make rules. (1)The Central Government shall, on the recommendations of the Council, by notification in the Official Gazette, make rules for carrying out the provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-
(a) the conditions which were included in the total base year revenue of the States, referred to in sub-clause
(g) of clause

(4) of article 279A of the Constitution, under sub-section

(3) of section 5 ;
(b) the conditions subject to which any part of revenues not credited in the Consolidated Fund of the respective State shall be included in the total base year revenue of the State, under sub-section

(6) of section5 ;
(c) the manner of refund of compensation by the States to the Central Government under sub-section

(6) of section 7 ;
(d) the manner of levy and collection of cess and the period of its imposition under sub-section

(1) of section 8 ;
(e) the manner and forms for payment of cess , furnishing of returns and refund of cess under sub-section

(1) of section 9 ; and
(f) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, by rules.

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Where this comes from

Text reproduced from the Central Board of Indirect Taxes and Customs, as available on 2026-09-05. The explanation and practice notes above are GSTZone’s own, written for this hub. If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.

cess section 12power to make rules

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