This circular provides clarification on the manner of exercising the option to pay GST at a concessional rate of 3% under Notification No. 2/2019–Central Tax (Rate) dated 7 March 2019, which is applicable to eligible registered persons having aggregate turnover up to ₹50 lakh in the preceding financial year.

The circular clarifies that an existing registered person intending to opt for this concessional rate is required to file an intimation in FORM GST CMP-02 by selecting the category “Any other supplier eligible for composition levy” on or before 30 April 2019. Such person is also required to file FORM GST ITC-03 for reversal of input tax credit, in accordance with the prescribed rules.

For new applicants seeking registration, the option to pay tax at the concessional rate may be exercised at the time of filing the registration application in FORM GST REG-01 by selecting the appropriate option.

It is further clarified that once the option is exercised for any place of business in a State or Union Territory, it shall apply to all places of business registered under the same PAN. The option shall be effective from the beginning of the financial year or from the date of registration in case of new registrants.

These clarifications aim to ensure uniform and smooth implementation of the concessional tax scheme.