[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 7
th
March, 2019
G.S.R......(E).- In exercise of the powers conferred by sub-section (1) of section 9, sub-
section (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:-
Table
Description of supply Rate
(per
cent.)
Conditions
(1) (2) (3)
First supplies of goods or
services or both upto an
aggregate turnover of fifty lakh
rupees made on or after the 1
st
day of April in any financial
year, by a registered person.
3
1.Supplies are made by a registered person, -
(i) whose aggregate turnover in the preceding
financial year was fifty lakh rupees or below;
(ii) who is not eligible to pay tax under sub-section
(1) of section 10 of the said Act;
(iii) who is not engaged in making any supply
which is not leviable to tax under the said Act;
(iv) who is not engaged in making any inter-State
outward supply;
(v) who is neither a casual taxable person nor a
non-resident taxable person;
(vi) who is not engaged in making any supply
through an electronic commerce operator who is
required to collect tax at source under section 52; and
(vii) who is not engaged in making supplies of the
goods, the description of which is specified in column
(3) of the Annexure below and falling under the tariff
item, sub-heading, heading or Chapter, as the case may
be, as specified in the corresponding entry in column
(2) of the said annexure.
2.Where more than one registered persons are having
the same Permanent Account Number, issued under the
Income Tax Act, 1961(43 of 1961), central tax on
supplies by all such registered persons is paid at the
rate specified in column (2) under this notification.
3. 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.
4. The registered person shall issue, instead of tax
invoice, a bill of supply as referred to in clause (c) of
sub-section (3) of section 31 of the said Act with
particulars as prescribed in rule 49 of Central Goods
and Services Tax Rules.
5. The registered person shall mention the following
words at the top of the bill of supply, namely: -
‘taxable person paying tax in terms ofnotification No.
2/2019-Central Tax (Rate) dated 07.03.2019, not
eligible to collect tax on supplies’.
6. The registered person opting to pay central tax at the
rate of three percent under this notification shall be
liable to pay central tax at the rate of three percent on
all outward supplies specified in column (1)
notwithstanding any other notification issued under
sub-section (1) of section 9 or under section 11 of said
Act.
7. The registered person opting to pay central tax at the
rate of three percent under this notification shall be
liable to pay central tax on inward supplies on which
he is liable to pay tax under sub-section (3) or, as the
case may be, under sub-section (4) of section 9 of said
Act 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.
ANNEXURE
Sl. No. Tariff item, sub-
heading, heading or
Chapter
Description
(1) (2) (3)
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
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.
4. This notification shall come into force on the 1
st
day of April, 2019.
[F. No.354/25/2019-TRU]
(Gunjan Kumar Verma)
Under Secretary to the Government of India
