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Union Territory Tax Notifications (Rate)

Title 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
Number 02/2019
Date 07-03-2019
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1) In exercise of the powers conferred by sub-section (1) of section 7,subsection (1) of section 8, clause (v) of section 21 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), read with sub-section (1) of section 16 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (herein after referred to as the “said Act”), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby notifies that the Union Territory Tax, on the intra-State supply of goods or services or both as specified in column (1) of the Table below, shall be levied at the rate specified in the corresponding entry in column (2), subject to the conditions as specified in the corresponding entry in column (3) of the said table below, namely:-

Description of supplyRate(percent.)Conditions
(1)(2)(3)
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.3

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.

ANNEXURE


Sl. No.Tariff item, subheading,heading or ChapterDescription
(1)(2)(3)
12105 00 00Ice cream and other edible ice, whether or not containing cocoa.
22106 90 20Pan masala
324All goods, i.e. Tobacco and manufactured tobacco substitutes

2) In computing aggregate turnover in order to determine eligibility of a registered person to pay union territory tax at the rate of three percent under this notification, value of supply of exempt services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount, shall not be taken into account.

3) Explanation. – For the purpose of this notification, -

(i) “tariff item”, “sub-heading”, “heading” and “chapter” shall mean respectively a tariff item, sub-heading, heading and chapters specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).

(ii) the rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification.

4) This notification shall come into force on the 1 stday of April, 2019.