CBIC amends the Notification regarding composition scheme for supplier of services with a tax rate of 6% having annual turnover in preceding year upto Rs 50 lakhs

Apr 04, 2019 | by Avantis RegTech Legal Research Team


The Central Board of Indirect Taxes and Customs (CBIC) on March 29, 2019, has amended the Notification No. 02/2019-Central Tax (Rate) dated March 07, 2019 regarding composition scheme for supplier of services with a tax rate of 6% having annual turnover in preceding year upto Rs 50 lakhs, to provide for application of Composition rules to persons opting to pay tax under Notification no. 2/2019- Central Tax (Rate).

In the Notification:

•In the Table, in column 3, after clause 7, the following clause shall be inserted, namely:

Clause 8: Where any registered person who has availed of input tax credit 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.

•In paragraph 3, in the Explanation, after clause (ii), the following clause shall be inserted, namely:

Clause (iii): The Central Goods and Services Tax Rules, 2017, as applicable to a person paying tax under section 10 of the said Act shall, mutatis mutandis, apply to a person paying tax under this notification.

The notification has come into force on April 01, 2019.

[Notification No. 9/2019-Central Tax (Rate)]

Click here to download the Notification.

 


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