Central Tax Circulars

CGST Circular 97/2019

To,

The Principal Chief Commissioners / Chief Commissioners / Principal
Commissioners / Commissioners of Central Tax (All) The Principal Director
Generals / Director Generals (All)

Madam/Sir,

Subject: Clarification regarding exercise of option to pay tax under
notification No. 2/2019-
CT(R) dt 07.03.2019 – Reg.

1) Attention is invited to notification No. 02/2019-Central Tax (Rate) dated
07.03.2019
(hereinafter referred to as “the said notification”) which prescribes rate of
central tax of 3% on first supplies of goods or services or both upto an
aggregate turnover of fifty lakh rupees made on or after the 1st day of April
in any financial year, by a registered person whose aggregate annual turnover
in the preceding financial year was fifty lakh rupees or below. The said
notification, as amended by notification No. 09/2019-Central Tax (Rate) dated
29.03.2019, provides that Central Goods and Services Tax Rules, 2017
(hereinafter referred to as “the said rules”), as applicable to a person paying
tax under section 10 of the Central Goods and Services Tax Act, 2017
(hereinafter referred to as “the said Act”) shall, mutatis mutandis, apply to a
person paying tax under the said notification.

2) In order to clarify the issue and to ensure uniformity in the
implementation of the
provisions of the law across field formations, the Board, in exercise of its
powers conferred by section 168 (1) of the said Act, hereby clarifies the
issues raised as below:–

(i) a registered person who wants to opt for payment of central tax @ 3% by
availing the
benefit of the said notification, may do so by filing intimation in the manner
specified in sub-rule 3 of rule 3 of the said rules in FORM GST CMP-02 by
selecting the category of registered person as “Any other supplier eligible for
composition levy” as listed at Sl. No. 5(iii) of the said form, latest by 30th
April, 2019. Such person shall also furnish a statement in FORM GST ITC03 in
accordance with the provisions of sub-rule (3) of rule 3 of the said rules.

(ii) any person who applies for registration and who wants to opt for
payment of central tax
@ 3% by availing the benefit of the said notification, if eligible, may do so
by indicating the option at serial no. 5 and 6.1(iii) of FORM GST REG-01 at the
time of filing of application for registration.

(iii) the option of payment of tax by availing the benefit of the said
notification in respect of
any place of business in any State or Union territory shall be deemed to be
applicable in respect of all other places of business registered on the same
Permanent Account Number.

(iv) the option to pay tax by availing the benefit of the said notification
would be effective
from the beginning of the financial year or from the date of registration in
cases where new registration has been obtained during the financial year.

3) It may be noted that the provisions contained in Chapter II of the said
Rules shall mutatis
mutandis apply to persons paying tax by availing the benefit of the said
notification, except to the extent specified in para 2 above.

4) Difficulty if any, in the implementation of this circular may be brought
to the notice of
the Board. Hindi version would follow.