Union Territory Tax Notification (Rate) 02/2019 – To give composition scheme for supplier of services with a tax rate of 6% having annual turn over in preceding year upto Rs 50 lakhs

1.Supplies are made by a registered person, –

1. whose aggregate turnover in the preceding
   financial year was fifty lakh rupees or below;
2. who is not eligible to pay tax under sub-section
   (1) of section 10 of the said Act;
3. who is not engaged in making any supply which
   is not leviable to tax under the said Act;
4. who is not engaged in making any inter-State
   outward supply;
5. who is neither a casual taxable person nor a nonresident
   taxable person;
6. 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
7. 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 subsection
(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.

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.