CBIC amends Notification Nos. 02/2019- Central Tax (Rate) and 02/2019- Union Territory Tax (Rate) so as to provide for application of Composition rules to persons opting to pay tax

Circular No.ES/436/2018-19                                                             March 30, 2019

To: Members of the Council

Sub.: CBIC amends Notification Nos. 02/2019- Central Tax (Rate) and 02/2019- Union Territory Tax (Rate) so as to provide for application of Composition rules to persons opting to pay tax

Dear Member,                          

Kindly refer to Council’s earlier Circular No. ES/ 411 /2018-19  dated 11^th March, 2019 in which CBIC had issued Notification No. 2/2019- Central Tax (Rate) dated 7^th March, 2019 and Notification No. 2/2019- Union Territory Tax (Rate) dated 7^th March, 2019 notifying about the availability of a Composition Scheme for Suppliers of Services (or Mixed Suppliers) with a Tax Rate of 6% (3% CGST +3% SGST) having an Annual Turnover in the preceding Financial Year up to Rs 50 lakhs. This notification shall come into force w.e.f. 1^st April, 2019.

Now, CBIC has issued following notifications to make amendments in Notification Nos. 02/2019- Central Tax (Rate) dated 7^th March, 2019 and 02/2019- Union Territory Tax (Rate) dated 7^th March, 2019 so as to provide for application of Composition rules to persons opting to pay tax.

1. Notification No. 9/2019- Central Tax (Rate) dated 29^th March, 2019

2. Notification No. 9/2019- Union Territory Tax (Rate) dated 29^th March, 2019

Following amendments have been made in the above mentioned Notifications:

1. A clause has been added in in Column 3 of the Table after clause 7.

2. A clause has been added in the Explanation after clause (ii) in paragraph 3.

Members may kindly make a note of the above amendments.

Thanking you,

Yours faithfully,

S. BALARAJU
EXECUTIVE DIRECTOR