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:-
[a. Section under which composition levy is opted: 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
b. Section under which composition levy is opted: 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
c. Section under which composition levy is opted: 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
d. Section under which composition levy is opted: 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 turnover of supplies of goods and services in the State or Union territory’] 1
1 Substituted for
"1. Manufacturers, other than manufacturers of such goods as may be notified by the Government - [0.5% (half per cent) of the turnover in the state or union territory] 1
2. Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II - [2.5% (two and a half per cent) of the turnover in the state or union territory] 2
3. Any other supplier eligible for composition levy under section 10 and these rules - [0.5% (half per cent) of the turnover of the taxable supplies of [goods and services] 3 in the state or union territory] 4
1 Substituted for the word [one per cent.] with effect from 01.01.2018 vide Notf no. 03/2018- CT dt 23.01.2018
2 Substituted for the word [two and a half per cent.] with effect from 01.01.2018 vide Notf no. 03/2018- CT dt 23.01.2018
3 Substituted for the word [goods] with effect from 01.02.2019 vide Notf no. 03/2019- CT dt 29.01.2019
4 Substituted for the word [half per cent.] with effect from 01.01.2018 vide Notf no. 03/2018- Central Tax dt 23.01.2018"
vide Notf 50/2020-CT dt 24.6.2020. Made effective from 01.04.2020