Rule 7 of CGST Rules 2017: Tax Rate under Composition Levy

Provisions under Rule 7 of the Central Goods and Services Tax (CGST) Rules, 2017 relating to “Tax Rate under Composition Levy”, are as under:

CGST Rule 7: Rate of tax of the Composition Levy (Chapter-II: Composition Levy Rules) 

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:-

Amendments History:

1. Composition tax rates amended w.e.f. 01/01/2018 vide Central Tax Notification 3/2018 dt. 23/01/2018:

(a) at Sl. No. 1/ Column (3) of the Old Table below, the text ‘one per cent’ substituted with the text ‘half per cent of the turnover in the State or Union territory’;

(b) at Sl. No. 2/ Column (3) of the Old Table below, the text ‘two and a half per cent’ substituted with the text ‘two and a half per cent of the turnover in the State or Union territory’;

(c) at Sl. No. 3/ Column (3) of the Old Table below, the text ‘half per cent’ substituted with the text ‘half per cent of the turnover of taxable supplies of goods in the State or Union territory’.

2. At Sl. No. 3/ Column (3) of the Old Table below, the text ‘goods’ substituted with the text ‘goods and services’ w.e.f. 01/02/2019 vide Central Tax Notification 3/2019 dt. 29/01/2019.

3. Old Table below relating to rates of tax of composition levy was substituted with the New Table above, w.e.f. 01/04/2020, vide Central Tax Notification 50/2020 dt. 24/06/2020 | Corrigendum.

4. At Sl. No. 3/ Column (3) of the New Table above, the text ‘turnover of taxable’ substituted for the text ‘turnover of’ vide Central Tax Notification 50/2020 dt. 24/06/2020 | Corrigendum.

Old Table of Composition Levy Rates (which was substituted with New Table above)

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Note: The CGST Rules 2017 along with the prescribed Forms were initially notified vide Central Tax Notifications 3/2017 dated 19/06/2017 (Rule 1 to 26), 10/2017 dated 28/06/2017 (Rules 27 to 138) and 15/2017 dated 01/07/2017 (Rules 139 to 162). These Rules/ Forms were subsequently amended by CBIC through various Notifications issued from time to time. Information on this page is a Rule-wise compilation of the Amendments made by various Notifications issued by CBIC from time to time, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.