Important Keyword: GST, CGST, Notification No. 1/2018 - Central Tax, F. No. 354/320/2017- TRU, Section 10(1) CGST Act 2017, Notification No.8/2017-Central Tax, Notification No. 46/2017-Central Tax.
Words: 911 Read time: 5 minutes.
Table of Contents
[F. No. 354/320/2017- TRU]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 1st January, 2018
Notification No. 01/2018 - Central Tax: Central Tax seeks to further amend notification No. 8/2017 - Central Tax so as to prescribe effective rate of tax under composition scheme for manufacturers and other suppliers.
GST: [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY PART II, SECTION 3, SUB-SECTION (i)]
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 10 of the Central Goods and Services Tax Act, 2017 (12 of 2017) the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.8/2017- Central Tax, dated the 27th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 647 (E), dated the 27th June, 2017, namely:-
In the said notification, in the opening paragraph, -
- in clause (i), for the words “one per cent.”, the words “half per cent.” shall be substituted;
- in clause (iii), for the words “half per cent. of the turnover”, the words “half per cent. of the turnover of taxable supplies of goods” shall be substituted.
(Ruchi Bisht)
Under Secretary to
Government of India
Note: - The principal notification No.8/2017-Central Tax, dated the 27th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 647(E), dated the 27th June, 2017 and last amended by Notification No. 46/2017-Central Tax, dated 13th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number GSR 1287 (E), dated the 13th October, 2017.
📚 Frequently Asked Questions (FAQs): Notification No. 01/2018 – Central Tax
Q1: What is Notification No. 01/2018 – Central Tax?
Answer:
It is a GST notification that amended composition scheme tax rates by reducing the rate for manufacturers and clarifying the rate for traders. 01
Q2: Under which section was this notification issued?
Answer:
It was issued under Section 10(1) of the CGST Act, which governs the composition scheme. 01
Q3: What was the major change in composition rates?
Answer:
Manufacturers: reduced from 1% to 0.5%
Traders: clarified as 0.5% of taxable turnover of goods 01
Q4: Which notification was amended by this one?
Answer:
It amended Notification No. 8/2017 – Central Tax. 01
Q5: Who benefits from this notification?
Answer:
Small manufacturers
Small traders under composition scheme
Q6: Can service providers opt for this composition scheme?
Answer:
At that time, only certain service providers were allowed.
Later, special composition schemes for service providers were introduced through subsequent notifications.
Q7: Can composition dealers claim input tax credit?
Answer:
No.
Composition dealers cannot claim ITC.
Q8: Can composition dealers collect GST from customers?
Answer:
No.
They must pay tax out of their own pocket and cannot charge GST separately.
Q9: What is the turnover limit for composition scheme?
Answer:
The limit has been revised over time.
Currently, it is generally:
₹1.5 crore for most states
₹75 lakh for special category states
Q10: What happens if turnover exceeds the limit?
Answer:
The taxpayer must:
Switch to regular GST scheme
Start filing regular returns
Q11: What returns are filed under composition scheme?
Answer:
CMP-08 (quarterly)
GSTR-4 (annual)
Q12: Can composition dealers make inter-state sales?
Answer:
No.
Inter-state supply is not allowed under the composition scheme.
Q13: What is the connection between Section 10 and this notification?
Answer:
Section 10 allows composition tax rates.
Notification 01/2018 revised those rates under the section.
Q14: Is this rate still applicable today?
Answer:
The composition scheme rates have been revised further over time through later notifications.
Q15: Where can businesses get help with composition scheme registration?
Answer:
You can get expert assistance from Finodha for:
GST Registration: https://finodha.in/online-gst-registration/
GST Return Filing: https://finodha.in/gst-return-filing/
GST Compliance: https://finodha.in/gst-compliance/
Conclusion
Notification No. 01/2018 – Central Tax played an important role in reducing the tax burden on small manufacturers and traders under the composition scheme. By lowering the tax rate, the government encouraged small businesses to adopt the simplified GST structure and improve compliance.
Download PDF: Notification No. 01/2018 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
Read more interesting articles:
