Description of supply

Rate

(per

cent.)

Conditions

First   supplies   of   goods   or services   or   both   upto   an

aggregate turnover of fifty lakh rupees made on or after the 1^st day  of  April  in  any  financial

year, by a registered  person.

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), central 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-Central Tax (Rate) dated 07.03.2019, not eligible to collect tax on supplies’.

6.         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.

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

Sl.No.

Tariff item, sub-heading,heading or

Chapter

 Description

1.

2105 00 00

Ice cream and other edible ice, whether or not containing cocoa.

2.

2106 90 20

Pan masala

3.

24

All goods, i.e. Tobacco and manufactured tobacco substitutes