In exercise of the powers conferred by section 9, section 11(1), section 16(1) of the CGST Act, 2017,

the Central Government 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

(1)

(2)

(3)

First supplies of goods or services or both upto an aggregate turnover of Rs.50 lacs made on or after the 1st day of April in any FY, by a RP

3

1.Supplies are made by a registered person,

(i) whose AT in the preceding FY was Rs.50 lacs or below;

(ii) who is not eligible to pay tax u/ss 10(1);

(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 ECO who is required to collect tax at source u/s 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.

2.Where more than one RPs are having the same PAN, central tax on supplies by all such RPs is paid at the rate specified in column (2) under this notification.

3. RP 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. RP shall issue, instead of tax invoice, a bill of supply as referred to section 31(3)(c) with particulars as prescribed in rule 49.

5. RP 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’.

6. RP opting to pay central tax at the rate of 3% under this notification shall be liable to pay central tax at the rate of 3% on all outward supplies specified in column (1) notwithstanding any other notification issued u/s 9(1) or 11 of said Act.

7. RP opting to pay central tax at the rate of 3% under this notification shall be liable to pay central tax on inward supplies on which he is liable to pay tax u/s 9(3) or (4) 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.

[1][8. Where any RP who has availed of ITC 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 there-under and after payment of such amount, the balance of input tax credit, if any, lying in his electronic credit ledger shall lapse.]

S. 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

[2][2A.

2202 10 10

Aerated Water]

3.

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All goods, i.e. Tobacco and manufactured tobacco substitutes