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of <h1>Gujarat Sets 3% State Tax on Initial Supplies up to Rs. 50 Lakh for Eligible Small Businesses, Effective April 2019.</h1> The Government of Gujarat, under Notification No. 2/2019-State Tax (Rate), effective from April 1, 2019, sets a 3% state tax rate on the first supplies of goods or services up to fifty lakh rupees in a financial year by eligible registered persons. Eligibility criteria include having a prior year's turnover of fifty lakh rupees or below, not engaging in inter-State or e-commerce supplies, and not dealing in specified goods like ice cream, pan masala, and tobacco. Registered persons must issue a bill of supply instead of a tax invoice and cannot collect tax from recipients or claim input tax credit.
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