Notification No 2/2019 Central Tax (Rate)
Notification No 2/2019 Central Tax (Rate) Dated 7th March, 2019 To give composition scheme for supplier of services or Goods with a tax rate of 6% having annual turn over in preceding year upto Rs 50 lakhs. Also refer Notification No 9/2019 Central Tax (Rate) Dated 29 th March, 2019 Seeks to amend notification No. 02/2019- Central Tax (Rate) so as to provide for Reversal of ITC on Stock and application of Composition rules to persons opting to pay tax under notification no. 2/2019- Central Tax (Rate). and Circular No 97/16/2019 GST Dated 5th April 2019
Circular clarifying issues regarding exercise of option to pay tax under notification No. 2/2019- CT(R) dt 07.03.2019 issued. AND NOTIFICATION NO. 18/2019-CENTRAL TAX (RATE), DATED 30-9-2019]
[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]
Government of India
Ministry of Finance
(Department of Revenue)
Notification No. 2/2019-Central Tax (Rate)
New Delhi, the 7th March, 2019
G.S.R……(E).- In exercise of the powers conferred by sub-section (1) of section 9, subsection (1) of section 11, sub-section (1) of section 16 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (herein after referred to as the “said Act”), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public
interest so to do, hereby notifies that the central tax, on the intra-State supply of goods or services or both as specified in column (1) of the Table below, shall be levied at the rate specified in the corresponding entry in column (2), subject to the conditions as specified in the corresponding entry in column (3) of the said table below, namely:-
|Description of supply||Rate (per cent.)||Conditions|
|First supplies of goods or services or both upto an aggregate turnover of fifty lakh rupees made on or after the 1st day of April in any financial year, by a registered person.||3|
1.Supplies are made by a registered person, –
1 [ 8. Where any registered person who has availed of input tax credit opts to pay tax under this notification, he shall pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock and on capital goods as if the supply made under this notification attracts the provisions of section 18(4) of the said Act and the rules made thereunder and after payment of such amount, the balance of input tax credit, if any, lying in his electronic credit ledger shall lapse. ]
|Sl. No.||Tariff item, subheading, heading or Chapter||Description|
|1||2105 00 00||Ice cream and other edible ice, whether or not containing cocoa.|
|2||2106 90 20||Pan masala|
|2[2A||2202 10 10||Aerated Water ]|
|3||24||All goods, i.e. Tobacco and manufactured tobacco substitutes|
2. In computing aggregate turnover in order to determine eligibility of a registered person to pay central tax at the rate of three percent under this notification, value of supply of exempt services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount, shall not be taken into account.
3. Explanation. –For the purpose of this notification, –
(i) “tariff item”, “sub-heading”, “heading” and “chapter” shall mean respectively a tariff item, sub-heading, heading and chapters specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).
(ii) the rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification.
1[(iii) the Central Goods and Services Tax Rules, 2017, as applicable to a person paying tax under section 10 of the said Act shall, mutatis mutandis, apply to a person paying tax under this notification.]
4. This notification shall come into force on the 1 stday of April, 2019
(Gunjan Kumar Verma)
Under Secretary to the Government of India
Note : CGST (Third Removal of Difficulties) Order, 2019, dated 8-3-2019 provides that for the removal of difficulties, it is hereby clarified that provisions of clause (c) of sub-section (3) of section 31 of the CGST Act shall apply to a person paying tax under Notification No. 2/2019-Central Tax (Rate), dated 7-3-2019.
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Working Notes on Notification No 2/2019 Central Tax (Rate)
2. Inserted by Notification No. 18/2019-Central Tax (Rate), dated 30-9-2019, w.e.f. 1-10-2019.
notification no 02 2019-central tax dated 29th january 2019
notification no. 2/2019 central tax dt. 29 jan. 2019