Central Board of Indirect Taxes & Customs (CBIC) has issued a Circular No. 97/16/2019-GST to clarify that registered person paying tax in terms of Notification No. 2/2019-Central Tax (Rate) i.e. a registered persons engaged in first supply of goods or services or both within a State up to an aggregate turnover of Rs. 50 lakhs on or after the 1st day of April in any financial year paying tax at the rate of 6%(3% CGST and 3% SGST), may opt for the said scheme by filing a intimation in Form GST CMP-02 and selecting the category of registered person as “Any other supplier eligible for composition levy” latest by 30th day of April, 2019.
Other key points of the Circular are:
- Such person are also required to furnish a Statement in FORM GST ITC-03;
- Any person who applies for registration and who wants to opt for said scheme , may do so by indicating the option at serial no. 5 and 6.1(iii) of FORM GST REG-01 at the time of filing of application for registration;
- The option of payment of tax by availing the benefit of the said scheme in respect of any place of business in any State or Union territory shall be deemed to be applicable in respect of all other places of business registered on the same Permanent Account Number;
- The option to pay tax by availing the benefit of the said scheme would be effective from the beginning of the financial year or from the date of registration in cases where new registration has been obtained during the financial year;
- It has also been clarified that the provisions contained in Chapter II of the CGST Rules, 2017 i.e. Composition Levy, shall mutatis mutandis apply to persons paying tax by availing the benefit of the said Scheme, except to the extent specified above.