Section 148 of the CGST Act allows the government to notify certain classes of registered persons, and the special procedures to be followed by such persons including those with regard to registration, furnishing of return, payment of tax and administration of such persons.
The notification applies to :
- Registered person whose aggregate turnover in the preceding financial year did not exceed one crore and fifty lakh rupees
OR
- The registered person whose aggregate turnover in the year in which such person has obtained registration is likely to be less than one crore and fifty lakh rupees
AND
who did not opt for the composition levy under section 10 of the said Act
In pursuance of powers u/s 148, payment of tax for above class of persons has been confined to outward supply of goods at the time of supply u/s 12(2)(a) i.e. the date of issue of invoice by the supplier or the last date on which he is required to issue the invoice with respect to the supply.
Section 12(2)(b) which declares the date on which the supplier receives the payment with respect to the Supply as time of supply, where date of receipt falls before the date of supply, has been dispensed for small suppliers.
Note:
- Hence persons covered by composition levy shall continued to be taxed for advance payment against supply
- Further supplier of services shall also pay tax on advance payments .
Where turnover is likely to be lesser but actually exceeds 1.5 crore, whether such person is required to pay tax on advance payments after crossing 1.5 crore ?