SECTION 21 OF THE UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017, READ WITH SECTION 10 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – COMPOSITION LEVY IN UNION TERRITORIES – NOTIFIED RATE, TURNOVER AND CONDITIONS

NOTIFICATION NO. 2/2017-UNION TERRITORY TAX, DATED 27-6-2017
[AS AMENDED BY NOTIFICATIONS NO.16/2017-UNION TERRITORY TAX, DATED 27-6-2017 AND NO.1/2018-UNION TERRITORY TAX, DATED 1-1-2018]

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 ¹[one crore rupees], may opt to pay, in lieu of the tax payable by him, an amount calculated at the rate of,—

(i)		2 [ half 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)		3 [ half per cent of the turnover of taxable supplies of goods ] 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. No.	Tariff item, sub-heading, heading or Chapter	Description
(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.