Table

Conditions

(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), union territory 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- Union Territory Tax (Rate) dated 07.03.2019, not eligible to collect tax on supplies’.

6.The registered person opting to pay union territory tax at the rate of three percent under this notification shall be liable to pay union territory 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 union territory tax at the rate of three percent under this notification shall be liable to pay union territory 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.

¹[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.]

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.