Clarifications on Exercising Option to Pay Tax under Notification No. 2/2019-CT(R)
<p><span>The Government of India has issued clarifications regarding the option to pay tax under Notification No. 02/2019-Central Tax (Rate) dated 07.03.2019. Here are the main points from Circular No. 97/16/2019-GST:</span></p><ol start="1"><li><span><strong>Opting for 3% Tax Rate</strong>:</span><ul><li><span>Registered persons opting for a 3% tax rate must file FORM GST CMP-02 by selecting "Any other supplier eligible for composition levy" by 30th April, 2019. They must also furnish a statement in FORM GST ITC-03.</span></li></ul></li><li><span><strong>New Registration Applications</strong>:</span><ul><li><span>New applicants opting for the 3% tax rate should indicate their preference in FORM GST REG-01 at the time of registration.</span></li></ul></li><li><span><strong>Applicability Across Business Locations</strong>:</span><ul><li><span>The option to pay the 3% tax rate applies to all business locations registered under the same PAN.</span></li></ul></li><li><span><strong>Effective Date</strong>:</span><ul><li><span>The option is effective from the beginning of the financial year or the date of new registration within the year.</span> <a href="https://cms.plasament.com/storage/circular-cgst-97.pdf">circular-cgst-97</a><br> </li></ul></li></ol>