Notification No.: 40/2017 – Central Tax
Date of Notification: 13th October 2017
Relevant Sections and Rules:
- Central GST Act, 2017:
- Section 12(2)(a): Time of supply of goods (regular basis)
- Section 14: Change in rate of tax
- Section 148: Power to notify special procedures for certain classes of persons
- Chapter IX (Returns)
- Integrated GST Act: Not applicable
Summary of Notification
- Special Procedure for Small Registered Persons (Non-Composition):
The Central Government, exercising its powers under Section 148, notifies a class of small taxpayers who are not under the composition scheme and whose aggregate turnover:
- Did not exceed ₹1.5 crore in the preceding financial year, or
- Is likely to remain below ₹1.5 crore in the current financial year post-registration,
These taxpayers shall pay central tax on outward supplies of goods based on the time of supply provisions under Section 12(2)(a) (i.e., on the date of issuance of invoice or receipt of payment, whichever is earlier).
This special procedure also applies in cases of rate changes governed by Section 14 of the CGST Act.
- Return Filing and Tax Period Compliance:
Such taxpayers must:
- Furnish details and returns as specified in Chapter IX of the CGST Act and relevant rules.
- Comply with periodic tax payment requirements as defined under the Act.
Implication:
This notification ensures that small taxpayers not under the composition scheme follow regular supply-based tax payment timelines but with clarified applicability under time-of-supply provisions.
