Notification No. 46/2017 – Central Tax Explained

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Notification No. 46/2017 - Central Tax: Seeks to amend notification No. 8/2017-Central Tax.

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 amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.8/2017- Central Tax, dated the 27^th 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 27^th June, 2017, namely:-

In the said notification,-

for the words “seventy-five lakh rupees”, the words, “one crore rupees” shall be substituted;

for the words “fifty lakh rupees”, the words, “seventy-five lakh rupees” shall be substituted;

(Ruchi Bisht)
Under Secretary to
Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 46/2017 – Central Tax

Q1: What is Notification No. 46/2017 – Central Tax?

Answer:
Notification No. 46/2017 – Central Tax amended Notification No. 8/2017 and increased the turnover limit for the GST Composition Scheme under Section 10 of the CGST Act, 2017.

Q2: When was Notification No. 46/2017 issued?

Answer:
It was issued on 13 October 2017 by the Ministry of Finance, Government of India.

Q3: Which section governs the GST Composition Scheme?

Answer:
The Composition Scheme is governed by Section 10 of the CGST Act, 2017.

Q4: What change did this notification introduce?

Answer:
The notification increased turnover limits:
From ₹75 lakh to ₹1 crore
From ₹50 lakh to ₹75 lakh.

Q5: What is Notification No. 8/2017 – Central Tax?

Answer:
Notification No. 8/2017 originally introduced the GST Composition Scheme tax rates and eligibility conditions.

Q6: Who benefits from this notification?

Answer:
Small businesses, traders, and manufacturers benefit because more businesses become eligible for the Composition Scheme.

Q7: What is the current GST composition scheme limit?

Answer:
Currently, the turnover limit is ₹1.5 crore for most states and ₹75 lakh for special category states.

Q8: Can service providers opt for composition scheme?

Answer:
Initially, service providers were excluded. Later amendments introduced a composition-like scheme for service providers up to ₹50 lakh turnover.

Q9: Can composition dealers collect GST from customers?

Answer:
No. Composition dealers cannot collect GST separately from customers.

Q10: Can composition dealers claim input tax credit?

Answer:
No. Businesses under the composition scheme cannot claim Input Tax Credit (ITC).

Q11: Is GST registration required for composition scheme?

Answer:
Yes. A business must first register under GST before opting for the composition scheme.
👉 Get GST Registration
https://finodha.in/online-gst-registration/

Q12: How often do composition taxpayers file returns?

Answer:
CMP-08 – Quarterly tax payment
GSTR-4 – Annual return

Q13: Can composition dealers sell online through e-commerce?

Answer:
No. Composition dealers cannot supply goods through e-commerce operators required to collect TCS.

Q14: How can small businesses reduce GST compliance burden?

Answer:
They can opt for the Composition Scheme, which offers simplified returns and lower tax rates.

Q15: How can Finodha help businesses with GST compliance?

Answer:
Finodha provides services such as:
GST Registration
GST Return Filing
Compliance support
Business setup assistance
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https://finodha.in/setup-business/

Conclusion

Notification No. 46/2017 – Central Tax played an important role in expanding the GST Composition Scheme by increasing turnover limits. This amendment allowed many small businesses to reduce compliance burden and operate more efficiently under GST.

By making the scheme accessible to more taxpayers, the government strengthened MSME participation in India’s GST system.