Rule 7 of the CGST Rules, 2017 – Rate of tax of the composition levy – IDT Insight India

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 1[Table:-

Sl. No.	Section under which composition levy	Category of registered persons	Rate of tax
(1)	(2)	(3)	(4)
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 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]
4.	Sub-section (2A) of section 10	Registered persons not eligible under the composition levy under sub-section (1) and (2), but eligible to opt to pay tax under sub-section (2A), of section 10.	Three per cent. Of the turnover of supplies of goods and services in the State or Union Territory

Substituted vide Notification No. 50/2020 dated 24^th June, 2020 w.e.f. 1-4-2020, earlier read as “

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	^1*[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	^2*[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	^3[half per cent. of the turnover of taxable supplies of ^4[goods and services] in the State or Union territory]

1* Substituted vide Notification No. 3/2018 dated 23^th Jan, 2018, w.e.f. 1-1-2018, before it read as – “one percent”

2* Substituted vide Notification No. 3/2018 dated 23^th Jan, 2018, w.e.f. 1-1-2018, before it read as – “two and a half percent”

3* Substituted vide Notification No. 3/2018 dated 23^th Jan, 2018, w.e.f. 1-1-2018, before it read as – “half percent”

4*Amended vide Notification No. 3/2019 dated 29^th January, w.e.f. 1-2-2019, it earlier read as “goods”