As per then recent notification ( reproduced below in the article for your reference )persons who had an aggregate turnover of less than Rs.50 lakhs in the preceding financial year can enroll under the scheme and pay a flat 3% CGST on the first 50 lakhs of supply of goods or services.
Lets have a look on eligibility Criteria
To be eligible under the scheme, the supplier must meet the following conditions:
- Should have less than Rs.50 lakh aggregate turnover in the previous financial year or applying for New GST Registration in the current financial year.
- Should not be supplying any goods or services that are exempt from GST
- Should not be involved in the making inter-state supply (Selling goods/services from one state to another state).
- Should not make any sale through eCommerce operator
- Should not be involved in the supply of ice cream, pan or tobacco
- Should not be a Casual Taxable person or non resident taxable person
- Should not be enrolled under GST composition scheme
Conditions to be met if applied for scheme
- Should not collect any GST from customers
- Should not claim any GST Input Credit
- Should issue Bill of Supply NOT GST Invoice ( Tax Invoice )
- The top of the Bill of Supply should contain the words “‘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”
- Should pay a flat 3% central goods and services tax on all supplies
- Pay GST as applicable on all purchases made
How to Avail Scheme
1.In case of Already registered Taxpayers
The registered person can opt for the 3% GST rate scheme by filing Form GST CMP-02 before 30th April, 2019. In addition to GST CMP-02, the taxpayer would also be required to file FORM GST ITC03.
2. In case of person applying for New GST Registration
If a person or entity is applying for new GST registration and wants to opt for the scheme, they can do so by indicating the option while filing the GST registration application.
Benefits will be available starting from Current Financial year ( From 01/04/2019)
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Refer Notification alsoNotification