Central Board of Indirect Taxes & Customs (CBIC) has issued a Notification No. 02/2019– Central Tax(Rate) dated 7th March, 2019 to notify that a registered persons engaged in first intra-State supply of goods or services or both up to an aggregate turnover of Rs. 50 lakhs made on or after the 1st day of April in any financial year shall pay tax at the rate of 6%(3% CGST and 3% SGST) subject to the fulfilment of the following conditions:
- Such supplies are made by a registered person, –
- whose aggregate turnover in the preceding financial year was fifty lakh rupees or below;
- who is not eligible to pay tax under Composition Scheme;
- who is not engaged in making any supply which is not leviable to tax under the CGST Act;
- who is not engaged in making any inter-State outward supply;
- who is neither a casual taxable person nor a non-resident taxable person;
- who is not engaged in making any supply through an electronic commerce operator, who is required to collect tax at source; and
- who is not engaged in making supplies of the goods, the description of which is specified in the below table.
| Sl. No. | Tariff item, sub-heading, 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 |
| 3 | 24 | All goods, i.e. Tobacco and manufactured tobacco substitutes |
- Where more than one registered persons are having the same Permanent Account Number, issued under the Income Tax Act, 1961(43 of 1961), tax on supplies by all such registered persons is paid at the rate of 6% (3% CGST and 3% SGST)
- The registered person shall not collect any tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax.
- The registered person shall issue, instead of tax invoice, a bill of supply
- The registered person shall mention the following words at the top of the bill of supply, namely: – ‘taxable person paying tax in terms of notification No. 2/2019-Central Tax (Rate) dated 07.03.2019, not eligible to collect tax on supplies’.
- The registered person opting to pay tax at the rate of 6% (3% CGST and 3% SGST) under this notification shall be liable to pay tax at the rate of 6% (3% CGST and 3% SGST) on all outward supplies as specified above notwithstanding any other notification issued under sub-section (1) of section 9 or under section 11 of CGST Act.
- The registered person opting to pay tax at the rate of 6% (3% CGST and 3% SGST) under this notification shall be liable to pay tax on inward supplies on which he is liable to pay tax under the reverse charge mechanism or, in case of purchases made from unregistered persons at the applicable rates.
Explanation– For the purposes of this notification, the expression “first supplies of goods or services or both” shall, for the purposes of determining eligibility of a person to pay tax under this notification, include the supplies from the first day of April of a financial year to the date from which he becomes liable for registration under the said Act but for the purpose of determination of tax payable under this notification shall not include the supplies from the first day of April of a financial year to the date from which he becomes liable for registration under the Act.
This Notification shall come into force on the 1st day of April, 2019.
Source : Central Board of Indirect Taxes and Customs
