---
title: "Cess in Indian Taxation: Meaning & Examples | Model Diplomat"
description: "A cess is an earmarked surtax India levies for a named purpose, kept outside the divisible pool unlike a surcharge. Why states object and how it works."
url: "https://modeldiplomat.com/learn/glossary/cess-in-indian-taxation"
---

[New](https://modeldiplomat.com/)

#

Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- A cess is an earmarked tax levied by the Government of India over and above the base tax to fund a specified purpose, with proceeds reserved for that purpose alone.
- What is the difference between a cess and a surcharge?
- Are cess proceeds shared with the states?
- Where do cess collections go once received?
- What is the Health and Education Cess and how is it computed?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

Go beyond the definition

## Research Cess like a delegate

Model Diplomat's AI drafts position papers, speeches, and country research with real sources — built for MUN and politics students.

## Research it like a delegate

Research on modeldiplomat.com

## Ask a follow-up about Cess

Open a cited briefing in Model Diplomat search — timelines, positions, and sources you can use in committee or exam answers.

[Start research on Cess](https://modeldiplomat.com/search?q=Explain%20Cess%20%E2%80%94%20key%20dates%2C%20actors%2C%20positions%2C%20and%20sources)

Example

In the Union Budget 2021, Finance Minister Nirmala Sitharaman introduced the Agriculture Infrastructure and Development Cess on petrol, diesel, and selected imports while cutting basic excise duty, drawing state objections because cess revenue is not shared.

Keep learning

## Go deeper than the definition

[Explore all Civil Service & Diplomatic Exams lessons](https://modeldiplomat.com/learn/civil-services)[Test yourself with a quiz](https://modeldiplomat.com/learn/glossary/quiz/civil-services)

## Take Cess beyond the glossary

Ask the AI research engine built for diplomacy — get briefings, position papers, and speeches with sources you can cite in committee.