Central Board of Excise and Customs has launched a GST new scheme for the registered persons having turnover of Upto RS 50 Lacs during the financial year. As per the Notification No 02/2019 CT-R the intra-state supply of goods or services or both shall be taxed @6% GST for the ‘First supply of goods or services or both up to an aggregate turnover of Rs 50 Lacs on or after 01st April 2019. GST new scheme of 6% will be beneficial for small service providers who could not opt for Composition scheme .
Conditions for availing the benefit of 6% under GST new scheme –
a) whose aggregate turnover in the preceding financial year was fifty lakh rupees or below
b)who is not eligible to pay tax under sub-section (1) of section 10 of the said Act;
c)who is not engaged in making any supply which is not leviable to tax under the said Act
d)who is not engaged in making any inter-State outward supply;
e)who is neither a casual taxable person nor a non-resident taxable person;
f)who is not engaged in making any supply through an electronic commerce operator who is required to collect tax at source under section 52
g)who is not engaged in making supplies of ice cream , pan masala , Tobacco and its substitutes.
h)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
i)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.
j)where one person is opting for the said scheme then all the business under same PAN shall otp for the said scheme
k)the registered shall be liable to pay tax under RCM U/s 9(3) and 9(4).
l)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
Meaning of First supplies of goods or services or both –
For the GST new scheme , it means 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.
Also Read : Relief for Small Taxpayers
Link for Download of Notification :