Union Territory Tax Rate Notification: Simplified Guidelines for Small Businesses

The Central Government, under UTGST Act, 2017, introduces a simplified tax rate for small businesses. Registered persons with an aggregate turnover up to fifty lakh rupees can avail a reduced tax rate of 3%.

Eligible businesses must not be engaged in inter-State supplies or non-taxable supplies under the Act. They cannot be casual or non-resident taxable persons or supply through electronic commerce operators collecting tax at source.

The notification excludes specific goods like ice cream, pan masala, and tobacco from the reduced tax rate. Businesses opting for this scheme should issue a bill of supply instead of a tax invoice with prescribed details.

This measure aims to simplify tax compliance and support small businesses, effective from April 1, 2019.