The Central Goods and Services Tax Act, 2017
The Central Goods and Services Tax Rules, 2017
Chapter-II 1[Composition Levy]
Rule 7: Rate of tax of the composition levy
7. 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: –
2[TABLE
| Sl. No. | Section under which composition levy is opted | Category of registered persons | Rate of tax |
| (1) | (1A) | (2) | (3) |
| 1 | Sub-sections (1) and (2) of section 10 | 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 | Sub-sections (1) and (2) of section 10 | 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 | Sub-sections (1) and (2) of section 10 | Any other supplier eligible for composition levy under sub-sections (1) and (2) of section 10 | half per cent. of the turnover of taxable supplies of goods and services in the State or Union territory |
| 4 | Sub-section (2A) of section 10 | Registered persons not eligible under the composition levy under subsections (1) and (2), but eligible to opt to pay tax under sub-section (2A), of section 10 | three per cent. of the 3[turnover of] supplies of goods and services in the State or Union territory.] |
References
Enforcement:
Enforced w.e.f. June 22, 2017 [Notification No. G.S.R. 610(E) dated 19.06.2017].
Amendments:
1. Substituted by Central Goods and Services Tax (Amendment) Rules, 2019 vide Notification No. 03/2019-Central Tax dated 29th January, 2019, w.e.f. 01.02.2019, for the heading “Composition Rules”.
2. Substituted by Central Goods and Services Tax (Seventh Amendment) Rules, 2020 vide Notification No. 50/2020-Central Tax dated 24th June, 2020, w.e.f. 01.04.2020, for the Table:
| Sl. No. | Category of registered persons | Rate of tax |
| (1) | (2) | (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 and services] in the State or Union territory] |
Reference:
*Substituted by Central Goods and Services Tax (Amendment) Rules, 2018 vide Notification No. 3/2018-Central Tax dated 23rd January, 2018, w.e.f. 01.01.2018, for the words:
-
- “one per cent.”, the words “half per cent. of the turnover in the State or Union territory”.
- “two and a half per cent.”, the words “two and a half per cent. of the turnover in the State or Union territory”.
- “half per cent.”, the words “half per cent. of the turnover of taxable supplies of goods in the State or Union territory”.
#Substituted by Central Goods and Services Tax (Amendment) Rules, 2019 vide Notification No. 03/2019-Central Tax dated 29th January, 2019, w.e.f. 01.02.2019, for the words “goods”.
3. Corrigendum of Central Goods and Services Tax (Seventh Amendment) Rules, 2020 vide Notification No. 50/2020-Central Tax dated 24th June, 2020, for the words “turnover of taxable”, read “turnover of”.
Notifications:
n1. Turnover not exceed 1.5 crore opt to composition levy and pay tax, refer Notification No. 14/2019 – Central Tax dated – 07.03.2019
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