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Rules
Rule 7 of CGST Rules i.e. Rate of Tax for Composition Levy
May 1, 2020
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
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