Executive Summary:
This document contains two notifications from the Ministry of Finance, Department of Revenue, both dated June 27, 2017. The first notification, No. 8/2017-Central Tax, prescribes conditions for eligible registered persons to opt for a composition levy under the Central Goods and Services Tax Act, 2017. The second notification, No. 2/2017-Union Territory Tax, mirrors the provisions for Union Territories under the Union Territory Goods and Services Tax Act, 2017.
Key Points / Main Content:
Composition Levy Eligibility:
* Eligible registered persons with an aggregate turnover not exceeding seventy-five lakh rupees in the preceding financial year may opt to pay a composition levy.
* For certain specified states (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, and Himachal Pradesh), the aggregate turnover limit is fifty lakh rupees.
Composition Levy Rates:
* Manufacturer: 1% of turnover in the State/Union Territory.
* Suppliers under clause (b) of paragraph 6 of Schedule II of the said Act: 2.5% of turnover in the State/Union Territory.
* Other Suppliers: 0.5% of turnover in the State/Union Territory.
Ineligibility for Composition Levy:
* Manufacturers of ice cream and other edible ice (whether or not containing cocoa), pan masala, and all goods i.e., tobacco and manufactured tobacco substitutes, are ineligible for the composition levy. (Tariff items 2105 00 00, 2106 90 20, and Chapter 24 respectively).
Interpretation of Tariff Items:
* Tariff items, subheadings, headings, and chapters are as specified in the First Schedule to the Customs Tariff Act, 1975.
* The interpretation of tariff items will follow the rules and notes of the First Schedule to the Customs Tariff Act, 1975.
Impact Analysis:
Eligible Registered Persons:
* Impact: Opportunity to simplify tax payment with a composition levy based on turnover.
* Action Required: Assess eligibility based on turnover and type of goods manufactured, and decide whether to opt for the composition levy.
Manufacturers of Specified Goods (Ice cream, Pan Masala, Tobacco):
* Impact: Ineligible for the composition levy.
* Action Required: Must pay central tax under the regular scheme.
Central Government and Council:
* Impact: Fulfillment of duties under the Central Goods and Services Tax Act, 2017
* Action Required: Monitor the implementation and effectiveness of the composition levy scheme.
Key Entities Referenced
Central Goods and Services Tax Act, 2017: A central tax law in India, referred to in the notifications regarding tax rates for eligible registered persons.
Union Territory Goods and Services Tax Act, 2017: A tax law for Union Territories in India, mentioned in relation to tax rates for eligible registered persons.
Central Government: The governing body authorized to prescribe regulations and notifications related to taxation.
Council: An advisory body whose recommendations are considered by the Central Government in prescribing tax-related regulations.
Arunachal Pradesh: A state in India, specifically mentioned in the context of aggregate turnover limits for eligible registered persons.
Assam: A state in India, specifically mentioned in the context of aggregate turnover limits for eligible registered persons.
Customs Tariff Act, 1975: An Indian act, the First Schedule of which is used to define tariff items, subheadings, headings and chapters for goods.
Mohit Tewari: Under Secretary, the signatory of the notification.
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EXTRAORDINARY
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PART II—Section 3—Sub-section (i)
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No. 537] NEW DELHI, TUESDAY, JUNE 27, 2017/ASHADHA 6, 1939
िवत्त म(cid:7074)ं ालय
(राजस्व िवभाग)
अिधसूचना
नई िदल् ली, 27 जून, 2017
सं. 8/2017-क(cid:7286)(cid:7076)ीय कर
सा.का.िन. 647(अ).—क(cid:7286)(cid:7076)ीय सरकार, क(cid:7286)(cid:7076)ीय माल और सेवा कर अिधिनयम, 2017 (2017 का 12) की धारा 10
की उपधारा (1) के परंतुक के अधीन (cid:7079)दत् त शिक् तय(cid:7298) का (cid:7079)योग करते हुए, पिरषद ्की िसफािरश(cid:7298) पर िविहत करती ह ैिक ऐसा
कोई पा(cid:7074) रिजस् (cid:7069)ीकृत व् यिक् त, िजसका पूवर्वत(cid:7278) िवत् तीय वषर् म(cid:7286) कुल आवतर् पचहत् तर लाख रुपए से अिधक नह(cid:7277) ह,ै उसके (cid:7367)ारा
संदये क(cid:7286)(cid:7076)ीय कर के बदले म(cid:7286), िनम् निलिखत की दर पर संगिणत रकम का संदाय करने का िवकल् प ले सकेगा,—
(i) िकसी िविनमार्ता के मामले म(cid:7286) राज् य म(cid:7286) आवतर् का एक (cid:7079)ितशत ;
(ii) उक् त अिधिनयम की अनुसूची 2 के पैरा 6 के खंड (ख) म(cid:7286) िन(cid:7416)दष्र् ट (cid:7079)दाय करने म(cid:7286) लगे हुए व् यिक् तय(cid:7298) के मामल(cid:7286) म(cid:7286)
राज् य म(cid:7286) आवतर् का ढाई (cid:7079)ितशत ; और
(iii) अन् य (cid:7079)दायकतार्(cid:7312) के मामले म(cid:7286) राज् य म(cid:7286) आवतर् का आधा (cid:7079)ितशत :
परंतु पूवर्वत(cid:7278) िवत् तीय वषर् म(cid:7286) कुल आवतर् िनम् निलिखत िकन् ह(cid:7277) राज् य(cid:7298) म(cid:7286), उक् त अिधिनयम की धारा 25 के अधीन पा(cid:7074)
रिजस् (cid:7069)ीकृत, व् यिक् त रिजस् (cid:7069)ीकृत के मामले म(cid:7286) पचास लाख रुपए होगा, अथार्त्:—
(i) अरुणाचल (cid:7079)दशे ,
(ii) असम,
(iii) मिणपुर,
3951 GI/2017 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
(iv) मेघालय,
(v) िमजोरम,
(vi) नागाल(cid:7289)ड,
(vii) िसिक् कम,
(viii) ि(cid:7074)पुरा,
(ix) िहमाचल (cid:7079)दशे :
परंतु यह और िक रिजस् (cid:7069)ीकृत व् यिक् त, उक् त अिधिनयम की धारा 10 की उपधारा (1) के अधीन (cid:7079)शमन उ(cid:7365)हण के
िलए िवकल् प लेने के िलए पा(cid:7074) नह(cid:7277) होगा, यिद ऐसा व् यिक् त ऐसे माल का िविनमार्ता ह,ै िजसका वणर्न नीचे सारणी के स् तंभ (3)
म(cid:7286) िविन(cid:7416)दष्र् ट ह ै और उक् त सारणी के स् तंभ (2) म(cid:7286) तत् स् थानी (cid:7079)िविष् ट म(cid:7286) यथािविन(cid:7416)दष्र् ट, यथािस् थित, टैिरफ मद, उपशीषर्, शीषर्
या अध् याय के अंतगर्त आता ह ै:—
सारणी
(cid:7059).स.ं टैिरफ मद, उपशीष,र् शीष र्या अध्य ाय वणनर्
(1) (2) (3)
1. 2105 00 00 आइस(cid:7059)ीम और अन् य खा(cid:7378) बफर्, चाह ेउसम(cid:7286) कोका िमला ह ैया नह(cid:7277)
2. 2106 90 20 पानमसाला
3. 24 सभी माल, अथार्त् तम् बाकू और िविनिमर्त तम् बाकू अनुकल् प
स्प ष्ट ीकरण –
(1) इस सारणी म(cid:7286), ‘‘टैिरफ मद’’, ‘‘उपशीषर्’’, ‘‘शीषर्’’ और ‘‘अध् याय’’ से सीमाशुल् क टैिरफ अिधिनयम, 1975 (1975
का 51) की पहली अनुसूची म(cid:7286) यथािविन(cid:7416)दष्र् ट (cid:7059)मश: टैिरफ मद, उपशीषर्, शीष र्और अध् याय अिभ(cid:7079)ेत होगा ।
(2) उक् त सीमाशुल् क टैिरफ अिधिनयम, 1975 (1975 का 51) की पहली अनुसूची, िजसके अंतगर्त पहली अनुसूची के
अनुभाग और अध् याय िटप् पण तथा साधारण स् पष् टीकारक िटप् पण भी ह,(cid:7289) के िनवर्चन के िलए िनयम, जहां तक हो
सके, इस अिधसूचना के िनवर्चन के िलए लागू ह(cid:7298)गे ।
[फा. सं. 354/117/2017-टीआरयू]
मोिहत ितवारी, अवर सिचव
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
New Delhi, the 27th June, 2017
No. 8/2017-Central Tax
G.S.R. 647(E).—In exercise of the powers conferred under the proviso to sub-section (1) of
section 10 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said
Act), the Central Government, on the recommendations of the Council, hereby prescribes that an eligible¹Hkkx IIμ[k.M 3 (i)º Hkkjr dk jkti=k % vlk/kj.k 3
registered person, whose aggregate turnover in the preceding financial year did not exceed seventy five lakh
rupees, may opt to pay, in lieu of the central tax payable by him, an amount calculated at the rate of,––
(i) one per cent. of the turnover in State in case of a manufacturer,
(ii) two and a half per cent. of the turnover in State in case of persons engaged in making supplies
referred to in clause (b) of paragraph 6 of Schedule II of the said Act, and
(iii) half per cent. of the turnover in State in case of other suppliers:
Provided that the aggregate turnover in the preceding financial year shall be fifty lakh rupees in the
case of an eligible registered person, registered under section 25 of the said Act, in any following States,
namely:—
(i) Arunachal Pradesh,
(ii) Assam,
(iii) Manipur,
(iv) Meghalaya,
(v) Mizoram,
(vi) Nagaland,
(vii) Sikkim,
(viii) Tripura,
(ix) Himachal Pradesh:
Provided further that the registered person shall not be eligible to opt for composition levy under sub-
section (1) of section 10 of the said Act if such person is a manufacturer of the goods, the description of which
is specified in column (3) of the Table below and falling under the tariff item, sub-heading, heading or
Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Table:-
TABLE
S. Tariff item, sub- Description
No. heading, heading or
Chapter
(1) (2) (3)
1. 2105 00 00 Ice cream and other edible ice, whether or not containing cocoa.
2. 2106 90 20 Pan masala
3. 24 All goods, i.e. Tobacco and manufactured tobacco substitutes
Explanation.—
(1) In this Table, “tariff item”, “sub-heading”, “heading” and “chapter” shall mean respectively a tariff
item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act,
1975 (51 of 1975).
(2) The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975 (51 of
1975), including the Section and Chapter Notes and the General Explanatory Notes of the First
Schedule shall, so far as may be, apply to the interpretation of this notification.
[F. No. 354/117/2017-TRU]
MOHIT TEWARI, Under Secy.4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
िवत्त म(cid:7074)ं ालय
(राजस्व िवभाग)
अिधसूचना
नई िदल् ली, 27 जून, 2017
सं. 2 /2017-संघ राज् य क्ष(cid:7074)े कर
सा.का.िन. 648(अ).—क(cid:7286)(cid:7076)ीय सरकार, संघ राज् यक्षे(cid:7074) माल और सेवा कर अिधिनयम, 2017 (2017 का 14) की
धारा 21 के साथ पिठत क(cid:7286)(cid:7076)ीय माल और सेवा कर अिधिनयम, 2017 (2017 का 12) (िजसे इसम(cid:7286) इसके पश् चात् उक् त
अिधिनयम कहा गाय ह)ै की धारा 10 की उपधारा (1) और उपधारा (2) (cid:7367)ारा (cid:7079)दत् त शिक् तय(cid:7298) का (cid:7079)योग करते हुए, पिरषद ्
की िसफािरश(cid:7298) पर िविहत करती ह ै िक ऐसा कोई पा(cid:7074) रिजस् (cid:7069)ीकृत व् यिक् त, िजसका पूवर्वत(cid:7278) िवत् तीय वषर् म(cid:7286) कुल आवतर्
पचहत् तर लाख रुपए से अिधक नह(cid:7277) है, उसके (cid:7367)ारा संदेय कर के बदले म(cid:7286), िनम् निलिखत की दर पर संगिणत रकम का संदाय
करने का िवकल् प ले सकेगा,—
(i) िकसी िविनमार्ता के मामले म(cid:7286) संघ राज् यक्षे(cid:7074) म(cid:7286) आवतर् का एक (cid:7079)ितशत ;
(ii) उक् त अिधिनयम की अनुसूची 2 के पैरा 6 के खंड (ख) म(cid:7286) िन(cid:7416)दष्र् ट (cid:7079)दाय करने म(cid:7286) लगे हुए व् यिक् तय(cid:7298) के मामल(cid:7286)
म(cid:7286) संघ राज् यक्षे(cid:7074) म(cid:7286) आवतर् का ढाई (cid:7079)ितशत ; और
(iii) अन् य (cid:7079)दायकतार्(cid:7312) के मामले म(cid:7286) संघ राज् यक्षे(cid:7074) म(cid:7286) आवतर् का आधा (cid:7079)ितशत :
परंतु रिजस् (cid:7069)ीकृत व् यिक् त, संघ राज् यक्षे(cid:7074) माल और सेवा कर अिधिनयम, 2017 की धारा 21 के साथ पिठत उक् त
अिधिनयम की धारा 10 की उपधारा (1) के अधीन (cid:7079)ितकर के उ(cid:7365)हण का िवकल् प लेने के िलए पा(cid:7074) नह(cid:7277) होगा, यिद ऐसा
व् यिक् त ऐसे माल का िविनमार्ता ह,ै िजसका वणर्न नीचे सारणी के स् तंभ (3) म(cid:7286) िविन(cid:7416)दर्ष् ट ह ै और उक् त सारणी के स् तंभ (2) म(cid:7286)
तत् स् थानी (cid:7079)िविष् ट म(cid:7286) यथािविन(cid:7416)दष्र् ट, यथािस् थित, टैिरफ मद, उपशीषर्, शीषर् या अध् याय के अंतगर्त आता ह ै:—
सारणी
(cid:7059).स.ं टैिरफ मद, उपशीष,र् शीष र्या अध्य ाय वणनर्
(1) (2) (3)
1. 2105 00 00 आइस(cid:7059)ीम और अन् य खा(cid:7378) बफर्, चाह ेउसम(cid:7286) कोका िमला ह ैया नह(cid:7277)
2. 2106 90 20 पानमसाला
3. 24 सभी माल, अथार्त् तम् बाकू और िविनिमर्त तम् बाकू अनुकल् प
स्प ष्ट ीकरण –
(1) इस सारणी म(cid:7286), ‘‘टैिरफ मद’’, ‘‘उपशीषर्’’, ‘‘शीषर्’’ और ‘‘अध् याय’’ से सीमाशुल् क टैिरफ अिधिनयम, 1975
(1975 का 51) की पहली अनुसूची म(cid:7286) यथािविन(cid:7416)दष्र् ट (cid:7059)मश: टैिरफ मद, उपशीषर्, शीषर् और अध् याय
अिभ(cid:7079)ेत होगा ।
(2) उक् त सीमाशुल् क टैिरफ अिधिनयम, 1975 (1975 का 51) की पहली अनुसूची, िजसके अंतगर्त पहली
अनुसूची के अनुभाग और अध् याय िटप् पण तथा साधारण स् पष् टीकारक िटप् पण भी ह,(cid:7289) के िनवर्चन के िलए
िनयम, जहां तक हो सके, इस अिधसूचना के िनवर्चन के िलए लागू ह(cid:7298)गे ।
[फा. सं. 354/117/2017-टीआरयू]
मोिहत ितवारी, अवर सिचव¹Hkkx IIμ[k.M 3 (i)º Hkkjr dk jkti=k % vlk/kj.k 5
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
New Delhi, the 27th June, 2017
No. 2/2017-Union Territory Tax
G.S.R. 648(E).—In exercise of the powers conferred by sub-section (1) and sub-section (2) of
section 10 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said
Act) read with section 21 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), the Central
Government, on the recommendations of the Council, hereby prescribes that an eligible registered person,
whose aggregate turnover in the preceding financial year did not exceed seventy five lakh rupees, may opt to
pay, in lieu of the tax payable by him, an amount calculated at the rate of,––
(i) one per cent. of the turnover in Union territory in case of a manufacturer,
(ii) two and a half per cent. of the turnover in Union territory in case of persons engaged in making
supplies referred to in clause (b) of paragraph 6 of Schedule II of the said Act, and
(iii) half per cent. of the turnover in Union territory in case of other suppliers:
Provided that a registered person shall not be eligible to opt for composition levy under sub-section (1) of
section 10 of the said Act read with section 21 of the Union Territory Goods and Services Tax Act, 2017 if
such person is a manufacturer of the goods, the description of which is specified in column (3) of the Table
below and falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in
the corresponding entry in column (2) of the said Table:—
TABLE
S. Tariff item, sub- Description
No. heading, heading or
Chapter
(1) (2) (3)
1. 2105 00 00 Ice cream and other edible ice, whether or not containing cocoa.
2. 2106 90 20 Pan masala
3. 24 All goods, i.e. Tobacco and manufactured tobacco substitutes
Explanation.—
(1) In this Table, “tariff item”, “sub-heading”, “heading” and “chapter” shall mean respectively a tariff
item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act,
1975 (51 of 1975).
(2) The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975),
including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall,
so far as may be, apply to the interpretation of this notification.
[F. No. 354/117/2017-TRU]
MOHIT TEWARI, Under Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.