The Ministry of Finance vide its notification no. 1/2018- Central Tax dated January 1, 2018 as new amendments have been made in Goods and Services Tax (GST) tax rate for composition taxpayers.
Akin Notification also been issued under Union Territory (UT) GST Act 2017 vide its notification no. 1/2018- Union Territory Tax, dated January 1, 2018.
This has been done to reduce the onus of the Micro and Small manufactures to supply to the manufactures as they can easily absorb the cost and the buyer can also have inward supplies from them thereby supporting the ecosystems and giving a flip to the Make in India policy.
The change has been reduced from 2% to 1%.
The amendment in tax rates will be effective from July 1, 2017.