CHAPTER II-COMPOSITION LEVY

Rule 7

Rate of tax of the composition levy

This rule was made and amended vide the following notifications • Central Tax Notification No. 03/2019 (dated 29th January 2019)

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:-

 1[TABLE

Sl.No.Section under which composition levy is optedCategory of registered personsRate of tax
(1)(1A)(2)(3)
1.Sub-sections (1) and (2) of section 10Manufacturers, 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 10Suppliers 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 10Any 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 10Registered 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 2[turnover of]
taxable supplies of goods and services in the State or Union territory.
  1. Substituted (w. e. f. 01.04.2020) vide Notification No. 50/2020-CT dated. 24.06.2020 for
    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] ↩︎
  2. Substituted by Corrigendum G.S.R. 412(E), dated 25.06.2020. ↩︎
Sl.
No.

Category of registered personsRate of tax
(1)(2)(3)
1.Manufacturers, other than manufacturers of such goods as may be notified by the Governmenthalf 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 IItwo 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]