Clarification regarding exercise of option to pay tax under Notification No. 2/2019-CT(R), dated March 7, 2019 - GST - States - 41/2019 (ST/Tech/2019/10785)

OFFICE OF COMMISSIONER OF STATE TAX CHHATTISGARH, ATAL NAGAR, RAIPUR Circular No. 41/2019, dated September 30, 2019. Subject : Clarification regarding exercise of option to pay tax under Notification No. 2/2019-CT(R), dated March 7, 2019 -Regarding. Kind Attention to Notification No. 2/2019-State Tax (Rate), No. F-10-12/2019/CT/V(33), dated March 7, 2019 (hereinafter referred to as the said notification ) which prescribes rate of state tax of three per cent. on first supplies of goods or services or both up to an aggregate turnover of fifty lakh rupees made on or after the 1st day or April in any financial year, by a registered person whose aggregate annual turnover in the preceding financial year was fifty lakh rupees or below. The said notification, as amended by Notification No. 9/2019-State Tax (Rate), No. F-10-17/2019/CT/V(42), dated March 29, 2019, provides that Chhattisgarh Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules ), as applicable to a person paying tax under section 10 of the Chhattisgarh Goods and Services Tax Act. 2017 (hereinafter referred to as the said Act ) shall mutatis mutandis apply to a person paying tax under the said notification to further clarify this matter CBIC has issued a circular vide No. 97/16/2019-GST, dated April 5, 2019 which was further rectified vide corrigendum dated July 29, 2019. 2. In accordance with the circular issued by CBIC. in order to clarify the issue and to ensure uniformity in the implementation or the provisions of the law across the State, the Commissioner, in exercise or its powers conferred by section 168 of the said Act. hereby clarifies the issues raised as below : (i) a registered person who wants to opt for payment of Central tax at three per cent. by availing the benefit of the said notification, may do so by filing intimation in the manner specified in sub-rule (3) of rule 3 of the said rules in Form GST CMP-02 by selecting the category of registered person as Any other supplier eligible for composition levy as listed at Sl. No. 5(iii) of the said form, latest by 30th April, 2019. Such person shall also furnish a statement in Form GST ITC-03 in accordance with the provisions of sub-rule (3) of rule 3 of the said Rules. (ii) any person who applies for registration and who wants to opt for payment of State tax at three per cent. by availing the benefit of the said notification, if eligible, may do so by indicating the option at serial Nos. 5 and 6.1(iii) of Form GST REG-01 at the time of filing of application for registration. (iii) the option of payment of tax by availing the benefit of the said notification in respect of any place of business in any State or Union territory shall be deemed to be applicable in respect of all other places of business registered on the same permanent account number. (iv) the option to pay tax by availing the benefit of the said notification would be effective from the beginning of the financial year or from the date of registration in cases where new registration has been obtained during the financial year. 3. It may be noted that the provisions contained in Chapter II of the said Rules shall mutatis mutandis apply to persons paying tax by availing the benefit of the said notification, except to the extent specified in para 2 above. 4. Difficulty if any. in the implementation of this circular or any irregularity may be brought to the notice of this office. Commissioner, State Tax [No. ST/Tech/2019/10785]