Revised Central GST rates applicable on ‘First supplies’

The Central Government, on the recommendations of GST Council, has decided to revise the Central tax on the intra-State supply of goods and services by notification dated 7th March, 2019.

Tax at rate of 3% shall be levied on First supplies of goods or services or both upto an aggregate turnover of fifty lakh rupees made on or after the 1st day of April in any financial year, by a registered person, subject to following conditions:

1. Aggregate turnover of the supplier in the preceding financial year must be less than fifty lakh rupees.
2. Supplier must not be eligible to pay tax under section 10(1) i.e. Composition levy.
3. The supply must be leviable to tax under GST.
4. Supplier must not be engaged in making any inter-State outward supply;
5. Supplier must not be a casual taxable person or a non-resident taxable person.
6. Supplier must not be engaged in making any supply through an e-commerce operator who is required to collect tax at source.
7. Supplier must not be engaged in making supplies of Ice cream and other edible ice, whether or not containing cocoa, Pan masala, Tobacco and manufactured tobacco substitutes.

The registered person shall not collect any tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax. The registered person shall issue, instead of tax invoice, a bill of supply as per
clause (c) of section 31(3) and Rule 49 with heading- ‘taxable person paying tax in terms of notification No. 2/2019-Central Tax (Rate) dated 07.03.2019, not eligible to collect tax on supplies’.

The registered person opting to pay central tax under this notification shall be liable to pay central tax at the rate of three percent on all outward First supplies notwithstanding any other notification. Supplier shall be liable to pay central tax on inward supplies at the applicable rates.

This notification shall come into force on the 1st April, 2019.

Click here for the notification.