GST Updates by CA Rahul Gupta

Rules Rule 7 of CGST Rules i.e. Rate of Tax for Composition Levy

Financial Year: 2017

Rule 7 of CGST Rules

Rate of tax of the composition levy

The category of registered persons, eligible for composition levy under section 10 and the provisions of this Chapter, specified in column (2) of the Table below shall pay tax under section 10 at the rate specified in column (3) of the said Table:-

S No	Category of Registered Persons	Rate of Tax
Column 1	Column 2	Column 3
1	Manufacturers, other than manufacturers of such goods as may be notified by the Government	One per cent.
2	Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II	two and a half per cent
3	Any other supplier eligible for composition levy under section 10 and the provisions of this Chapter	half per cent

As per Notification No 03/2018 Central Tax (First Amendment to CGST Rules 2018) amended the following in the aforesaid table:-

S No	Category of Registered Persons	Rate of Tax
Column 1	Column 2	Column 3
1	Manufacturers, other than manufacturers of such goods as may be notified by the Government	half per cent. of the turnover in the State or Union territory
2	Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II	two and a half per cent. of the turnover in the State or Union territory
3	Any other supplier eligible for composition levy under section 10 and the provisions of this Chapter	half per cent. of the turnover of taxable supplies of goods in the State or Union territory

A futher amendment has been made vide Notification no 03/2019 Central Tax dated 29th Jan 2019,

changes have been highlighted in green for your reference

S No	Category of Registered Persons	Rate of Tax
Column 1	Column 2	Column 3
1	Manufacturers, other than manufacturers of such goods as may be notified by the Government	half per cent. of the turnover in the State or Union territory6
2	Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II	two and a half per cent. of the turnover in the State or Union territory
3	Any other supplier eligible for composition levy under section 10 and the provisions of this Chapter	half per cent. of the turnover of taxable supplies of goods and services in the State or Union territory

Thanks

CA Rahul Gupta