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

Rule 7 of ‘Central Goods and Services Tax (CGST) Rules 2017’: Rate of Tax 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. Category of registered persons Rate of tax
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 these rules half 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 with effect from 1 Jan. 2018 vide Notification No. 03/2018 Central Tax dt. 23 Jan. 2018.

2. In the Table, against serial number (3), in column (3), the words, “goods and services” substituted for the word “goods” w.e.f. 1 Feb. 2019 vide Notification 3/2019 Central Tax dt. 29 Jan. 2019.

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It may be noted that the above information is based on Updated CGST Rules 2017 (amended upto 28 June 2019), as compiled/ shared by CBIC (i.e. as notified/ amended upto 28 June 2019 by the CBIC). However, for detailed/ official information and/or subsequent updates, please refer relevant Notifications. E&OE

Further, it may be noted that CGST Rules 1 to 26 (pertaining to Chapters on Preliminary/ Composition/ Registration matters) were initially notified by CBIC (CBEC) vide Notification No. 3/2017 Central Tax dt. 19 June 2017, applicable w.e.f. 22 June 2017 (or as may be specified in respective Rules).

Other GST Related Posts:
Central Goods and Services Tax (CGST):
CGST Act/ Definitions CGST Rules/ Forms
CGST Notifications CGST Rate Notifications
CGST Circulars CGST Orders
Integrated Goods and Services Tax (IGST):
IGST Act/ Definitions IGST Rules/ Forms
IGST Notifications IGST Rate Notifications
IGST Circulars IGST Orders
Union Territory Goods and Services Tax (UTGST):
UTGST Act/ Definitions UTGST Rules/ Forms
UTGST Notifications UTGST Rate Notifications
UTGST Circulars UTGST Orders
List of Various State GST (SGST) Acts 2017 in India

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