Central Goods and Services Tax Rules, 2017
Chapter II - Composition levy
Rule 7 - Rate of tax of the composition levy
7. Rate of tax of the composition levy
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: -
3[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 sub-sections (1) and (2), but eligible to opt to pay tax under sub-section (2A), of section 10 | three per cent. of the 4[turnover of]4 taxable supplies of goods and services in the State or Union territory.]3 |
1-a. Substituted (w.e.f. 01.01.2018) vide Notification No. 3/2018-Central Tax Dated 23-01-2018, for "one per cent."
1-b. Substituted (w.e.f. 01.01.2018) vide Notification No. 3/2018-Central Tax Dated 23-01-2018, for "two and a half per cent."
1-c. Substituted (w.e.f. 01.01.2018) vide Notification No. 3/2018-Central Tax Dated 23-01-2018, for "half per cent."
2. Substituted (w.e.f. 01.02.2019) vide Notification No. 03/2019-Central Tax dated 29-01-2019 for "goods"
3. Substituted (w.e.f. 01.04.2020) vide Notification No. 50/2020-Central Tax 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 | 1-a[half per cent. of the turnover in the State or Union territory]1-a |
| 2. | Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II | 1-b[two and a half per cent. of the turnover in the State or Union territory]1-b |
| 3. | Any other supplier eligible for composition levy under section 10 and the provisions of this Chapter | 1-c[half per cent. of the turnover of taxable supplies of 2[goods and services]2 in the State or Union territory]1-c |
4. Substituted by Corrigendum G.S.R. 412(E), dated 25.06.2020 for "turnover of taxable".
Notifications
- Notification No. 08/2017 - 27-06-2017 - Seeks to to notify the turnover limit for Composition Levy for CGST
- Notification No. 03/2018 - 23-01-2018 - First Amendment 2018, to CGST Rules
- Notification No. 03/2019 - 29-01-2019 - Seeks to amend the CGST Rules, 2017.
- Notification No. 14/2019 - 07-03-2019 - Seeks to supersede notification No. 08/2017 - Central Tax dated 27.06.2017 in order to extend the limit of threshold of aggregate turnover for availing Composition Scheme u/s 10 of the CGST Act, 2017 to Rs. 1.5 crores.
- Notification No. 50/2020 - 24-06-2020 - Seeks to make seventh amendment (2020) to CGST Rules.
- Notification No. 02/2017 - 01-07-2017 - Goods and Services Tax Compensation Cess Rules, 2017
