Amendment in Rule 7 of Central Goods and Services Tax Rules, 2017 (CGST Rules) has been made wherein tax rates under composition scheme have been prescribed.
Tax rates applicable in case of composition levy shall be as under:
| Section Applicable | Category of registered person | Rate of Central Tax |
| Section 10(1) and Section 10(2) | Manufacturers, other than manufacturers of such goods as may be notified by the Government | 0.5 per cent. of turnover in the State or UT |
| Section 10(1) and Section 10(2) | Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II | 2.5 per cent. of turnover in the State or UT |
| Section 10(1) and Section 10(2) | Any other supplier eligible for composition levy under subsections (1) and (2) of section 10 | 0.5 per cent. of the turnover of taxable supplies of goods and services in the State or Union territory |
| Section 10(2A) | 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 | 3 per cent. of the turnover of taxable supplies of goods and services in the State or Union Territory |
Notification No. 50/2020-Central Tax dated June 24, 2020 to be effective from April 01, 2020
Corrigendum to Notification No. 50/2020 -Central Tax Dated 24th June, 2020
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Mr. Setia is a CA by Profession and expert in the field of Indirect Taxation Based in Delhi. Rich experience of over 5 year.