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Rule 7. Rate of tax of the composition levy

Rule 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: 

TABLE

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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 Governmenthalf 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 IItwo 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 10half 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 [turnover of] supplies of goods and services in the State or Union territory.

]

  1. Substituted (w.e.f. 01.04.2020) videNotification No. 50/2020-CTdated. 24.06.2020 for
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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]
  1. Substituted by Corrigendum G.S.R. 412(E), dated 25.06.2020.

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