Returns, payments and refunds
Cess Act s.9, GST (Compensation to States) Act
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Cess is paid, returned and refunded with the GST returns; the CGST machinery applies, and cess credit can be used only to pay cess.
What this means in practice
The parts that actually decide cases — the things a practitioner checks first.
Cess credit can be used ONLY to pay cess – it cannot be set against CGST, SGST or IGST, which is why exporters of cess goods accumulate it and claim refund.
Refund of accumulated cess credit is available on zero-rated supplies of cess goods made under an LUT (Circular 45/19/2018-GST).
How this provision is built
The skeleton, clause by clause — useful when a notice cites a specific sub-clause.
The exact words of the law
882 characters, uneditedReproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.
Read the full provision+
(1) Every taxable person, making a taxable supply of goods or services or both, shall-
(a) pay the amount of cess as payable under this Act in such manner;
(b) furnish such returns in such forms, along with the returns to be filed under the Central Goods and Services Tax Act; and
(c) apply for refunds of such cess paid in such form, as may be prescribed.
(2) For all purposes of furnishing of returns and claiming refunds, except for the form to be filed, the provisions of the Central Goods and Services Tax Act and the rules made there under, shall, as far as may be, apply in relation to the levy and collection of the cess leviable under section 8 on all taxable supplies of goods or services or both, as they apply in relation to the levy and collection of central tax on such supplies under the said Act or the rules made thereunder.
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 If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.
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