CBEC Notifies Turnover Limit for Composition Levy Registration: UT Tax Notification 2/2017

CBEC Notifies Turnover Limit for Registration under Composition Levy, i.e. u/s 10(1) and 10(2) of the CGST Act, 2017 read with Section 21 of the UTGST Act, 2017: UT Tax Notification No. 2/2017 dt. 27 June 2017

The CBEC has notified the Turnover Limit of Rs. 75 Lacs/ 50 Lacs for Registration under Composition Levy, i.e. under Sections 10(1) and 10(2) of the CGST Act, 2017 read with Section 21 of the UTGST Act, 2017, in line with the decision of the GST Council, along with exceptions, as under:

Turnover Limit Composition Levy Registration: UT Tax Notification No. 2/2017 dt. 27 June 2017

G.S.R. 648(E).- In exercise of the powers conferred by sub-section (1) and sub-section (2) of section 10 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act) read with section 21 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), the Central Government, on the recommendations of the Council, hereby prescribes that an eligible registered person, whose aggregate turnover in the preceding financial year did not exceed seventy five lakh rupees, may opt to pay, in lieu of the tax payable by him, an amount calculated at the rate of,–

(i) one per cent of the turnover in Union Territory in case of a manufacturer,

(ii) two and a half per cent of the turnover in Union Territory in case of persons engaged in making supplies referred to in clause (b) of paragraph 6 of Schedule II of the said Act, and

(iii) half per cent of the turnover in Union Territory in case of other suppliers:

Provided that the registered person shall not be eligible to opt for composition levy under sub-section (1) of section 10 of the said Act, read with section 21 of the Union Territory Goods and Services Tax Act, 2017, if such person is a manufacturer of the goods, the description of which is specified in column (3) of the Table 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 Table:-

Tariff item, subheading, heading or ChapterDescription
2105 00 00Ice cream and other edible ice, whether or not containing cocoa
2106 90 20Pan masala
24All goods, i.e. Tobacco and manufactured tobacco substitutes

Explanation. –

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

(2) 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.

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