Rule 7 of CGST Rules 2017: Tax Rate under Composition Levy

Provisions under Rule 7 of the Central Goods and Services Tax (CGST) Rules, 2017 relating to “Tax Rate under Composition Levy”, are as under:

CGST Rule 7: Rate of tax of the Composition Levy (Chapter-II: Composition Levy Rules) 

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:-

Sl. No. (1)  Section under which composition levy is opted (1A) Category of registered persons (2) Rate of tax (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 turnover of 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 turnover of taxable supplies of goods and services in the State or Union territory

Amendments History:

1. Composition tax rates amended w.e.f. 01/01/2018 vide Notification 3/2018 Central Tax dt. 23/01/2018:
(a) at Sl. No. 1/ Column (3) of the Old Table below, the text ‘one per cent’ substituted with the text ‘half per
cent of the turnover in the State or Union territory’;
(b) at Sl. No. 2/ Column (3) of the Old Table below, the text ‘two and a half per cent’ substituted with the text ‘two and a half per cent of the turnover in the State or Union territory’;
(c) at Sl. No. 3/ Column (3) of the Old Table below, the text ‘half per cent’ substituted with the text ‘half per cent of the turnover of taxable supplies of goods in the State or Union territory’.

2. At Sl. No. 3/ Column (3) of the Old Table below, the text ‘goods’ substituted with the text ‘goods and services’ w.e.f. 01/02/2019 vide Notification 3/2019 Central Tax dt. 29/01/2019.

3. Old Table below relating to rates of tax of composition levy was substituted with the New Table above, w.e.f. 01/04/2020, vide Notification 50/2020 Central Tax dt. 24/06/2020.

4. At Sl. No. 3/ Column (3) of the New Table above, the text ‘turnover of taxable’ substituted for the text ‘turnover of’ vide Corrigendum to Notification 50/2020 Central Tax dt. 24/06/2020.

Old Table of Composition Levy Rates (which was substituted with New Table above)

Sl. No.
(1)
Category of registered persons
(2)
Rate of tax
(3)
1 Manufacturers, other than manufacturers of such goods as may be notified by the Government one per cent 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 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 these rules half per cent half per cent of the turnover of taxable supplies of goods goods and services in the State or Union territory

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Note: The CGST Rules 2017 along with the prescribed Forms were initially notified vide Central Tax Notifications 3/2017 dt. 19/06/2017 (Rule 1 to 26), 10/2017 dt. 28/06/2017 (Rules 27 to 138) and 15/2017 dt. 01/07/2017 (Rules 139 to 162). These Rules/ Forms were subsequently amended by CBIC through various Notifications issued from time to time. Information on this page is a Rule-wise compilation of Amendments made by all such Notifications, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.

CBIC Updates (GST)
GST Circulars, Notifications, Press Releases, Orders, etc. issued by the Central Board of Indirect Taxes & Customs (CBIC) in different years, along with Section-wise/ Rule-wise Text of GST Acts/ Rules:
CGST: CGST Act/ Definitions, CGST Rules
IGST: IGST Act/ Definitions, IGST Rules
UTGST: UTGST Act/ Definitions, UTGST Rules
CBIC Circulars (CGST/ IGST/ UTGST): 2021, 2020, 2019, 2018, 2017
CBIC Central Tax (CGST) Notifications: 2021, 2020, 2019, 2018, 2017
CBIC Central Tax Rate (CGST Rate) Notifications: 2020, 2019, 2018, 2017
CBIC Integrated Tax (IGST) Notifications: 2020, 2019, 2018, 2017
CBIC Integrated Tax Rate (IGST Rate) Notifications: 2020, 2019, 2018, 2017
CBIC UT Tax (UTGST) Notifications: 2020, 2019, 2018, 2017
CBIC UT Tax Rate (UTGST Rate) Notifications: 2020, 2019, 2018, 2017
CBIC Compensation Cess Notifications: 2020, 2019, 2018, 2017
CBIC Compensation Cess Rate Notifications: 2020, 2019, 2018, 2017
CBIC Orders (CGST/ IGST/ UTGST): 2020, 2019, 2018, 2017
CBIC Press Releases: 2020, 2019, 2018, 2017
Note: For Official/ updated copy, please visit the CBIC website.

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