Small service providers who have availed input tax credit and availing the benefit of lower tax rate under notification no 02/2019-Central Tax(Rate) shall pay an amount equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock and on capital goods as if the supply attracts the provisions of section 18(4) of the said Act and the rules made there-under and after payment of such amount, the balance of input tax credit, if any, lying in his electronic credit ledger shall lapse.
CGST Rules, 2017 as applicable to a composition dealer under Section 10, shall mutatis mutandis apply to such service provider.
Notification no : 09/2019
Subject:Seeks to amend notification No. 02/2019- Central Tax (Rate) so as to provide for application of Composition rules to persons opting to pay tax under notification no. 2/2019- Central Tax (Rate).
Date of Issue: 29-03-2019
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