Notification Regarding Central Tax Rate on First Supplies

In this notification issued by the Government of India, central tax rates for the intra-state supply of goods or services are specified, subject to certain conditions. Here are the key points: Effective Date: The notification comes into effect on April 1, 2019.

Applicability: The specified central tax rate applies to the first supplies of goods or services or both made by a registered person with an aggregate turnover of fifty lakh rupees or below in the preceding financial year. Tax Rate: The central tax rate is set at 3% for eligible registered persons.

Conditions for Applicability: The registered person must not be engaged in inter-state outward supply, must not be a casual or non-resident taxable person, and must not supply through an e-commerce operator required to collect tax at source. The registered person should not be engaged in supplying certain specified goods listed in the Annexure. Invoice Requirements: Instead of a tax invoice, a bill of supply must be issued with specified particulars.

Inward Supplies: The registered person is liable to pay central tax on inward supplies at applicable rates. Aggregate Turnover Calculation: Exempt services like extending deposits, loans, or advances, where the consideration is represented by interest or discount, should not be considered in computing the aggregate turnover.

Annexure: The Annexure lists the specific tariff items for which the specified tax rate is applicable. Interpretation: The terms tariff item, sub-heading, heading, and chapter are defined according to the Customs Tariff Act, 1975. Rules for interpretation of the First Schedule to the said Act apply to this notification.

This notification is signed by Gunjan Kumar Verma, Under Secretary to the Government of India.