a registered person, whose aggregate turnover in the preceding financial year did not exceed Rs. 1.5 Cr. (75 lacs for Special category State except for the state of Assam, Himachal Pradesh and Jammu & Kashmir,) may opt to pay, in lieu of the tax payable by him, an amount calculated at such rate as may be prescribed, but not exceeding:
(a) Half Percent (0.5%) of the turnover in State or turnover in Union territory in case of a manufacturer,
(b) two and a half percent (2.5%) of the turnover in State or turnover in Union territory in case of persons engaged in making supplies referred to in clause (b) of paragraph 6 of Schedule II, and
(c) half percent (0.5%) of the turnover of taxable supply of goods in State or turnover in Union territory in the case of other suppliers.
Important points of consideration:
- A person who opts to pay tax under clause (a), (b), or (c) may supply services (other than those referred to in clause (b) of Schedule II), of value not exceeding 10% of the turnover in a State or Union territory in the preceding year or Rs. 5 lakhs, whichever is higher.
- The limit as per the bare act was initially Rs. 50 lakhs. This limit was increased to Rs. 1 Cr. and now after the recent notification no 14/2019-CT dated 07/03/2019 the limit has been increased to Rs. 1.5 Cr.
|S. No.||Categories of registered person||Central %||State/UT %||Total %||Value based on|
|1||Manufactures other than manufactures of such goods as may be notified by the government||0.50%||0.50%||1.00%||Turnover in State|
|2||Suppliers making supplies referred to in Clause (b) of para 6 of Schedule II|
Example: Restaurant, Catering, Mess or any other service contract where goods as food and drink is supplied for human consumption
|2.50%||2.50%||5.00%||Turnover in State|
|3||Other Suppliers||0.50%||0.50%||1.00%||Turnover of taxable supplies of goods & services in State|